National bank of Republic of Belarus

The national bank of Republic of Belarus (further – National bank) is the central bank and state body of Republic of Belarus, acts for the benefit of only Republic of Belarus.

1922

Until recently date of creation of a banking system in Belarus it was considered to be on January 3, 1922 – start date of work in Minsk of the Belarusian office of the State Bank at Narkomat of finance of the Belarusian SSR.

However the conducted researches of archive materials, studying of collections of finance documents and securities allowed to receive incontestable documentary evidences of the fact that the first banking institution in the territory of modern Belarus appeared at least on half a century earlier. Namely – on January 8, 1870 when the Decree of the Senate of the Russian Empire on organization in Gomel of city public bank was signed. From now on also the history of formation and development of a banking system of Belarus originates.

1862-1864

Why small Gomel, but not the large provincial center became the first Belarusian city having bank? The matter is that in the second half of the 19th century in the Russian Empire including in the territory of modern Belarus, intensive railway construction was unrolled. So, in 1862 the route St. Petersburg-Warsaw passed through Grodno, in 1868 on the Riga and Oryol line stations Vitebsk and Polotsk are mentioned, in 1871 Moscow is expensive – Brest connected Orsha, Borisov, Minsk, Baranovichi.

Each region on which the railroad ran received a powerful incentive for the economic growth as railway construction was under the state protection. Not accidentally founded in 1860. The emperor Alexander II the National bank of the Russian Empire almost at once after the opening started active financing of construction of the railroads. In 1861-1864 it selected the large amounts to the Main society of Russian Railways.

There was no Belarusian Gomel away from the happening processes also. After canceling in Russia of the serfdom business activity in Gomel considerably increased, through the city construction of the Libavo-Romensky railroad connecting Ukraine to the Baltics and also Polesskaya of the railroad connecting all southern part of modern Belarus, Poland, Ukraine began. All this led to very fast inflow of the population. The solution of the vital issues of city life required full-fledged financial institution. Perhaps, it also causes emergence of the relevant decision of the Senate on organization in Gomel of city public bank.

Its fixed capital at organization was defined in 20 thousand rubles. The check of this bank – indisputable "physical evidence" of existence of bank is stored in museum fund of National bank. As well as many other city banks, this Belarus's first private commercial credit institution issued long-term loans under pledge of city and construction sections. The capital of these banks was formed of means of the city budget, and generally average and small entrepreneurs were credited. The loans were granted to also town council, local zemstvo, and profit on transactions was deducted for needs of city improvement and the charitable purposes. Afterwards the city banks, except Gomel, appeared also in Polotsk, Vitebsk, Borisov, Mogilyov, the Abbot.

1870-1873

Due to the development of construction of the railroads in the provincial cities in the territory of Belarus departments of National bank of the Russian Empire opened (Minsk – 1881, Vitebsk – 1883, Mogilev – 1883, Grodno – 1884). Except financing of needs of railway construction, provincial departments had the right to credit the industry and trade, to be engaged in exchange of old bank notes for new and large on small and back, to pay coupons for interest bearing securities, to accept a cash liquidity from legal entities and physical persons for transfer to the State Bank and its offices and departments, to accept deposits, to issue loans on the security of interest bearing securities, actions and bonds.

It is known that from organizations of National bank first place on the volume of accounting transactions was won by the Moscow office, the second – Odessa, towards the end of the 19th century – Kiev; The Minsk department was the fifth in this list, having outstripped, thus, all other departments of Northwest edge. By the end of the 19th century Minsk became the largest banking center in the region.

In spite of the fact that originally National bank remained the largest commercial bank in the Russian Empire, from 1870th its provision began to change in connection with development of non-state credit institutions. Creating clients, they enticed borrowers preferential terms of crediting.

Tickets and the stock of the Minsk commercial bank of 250 rubles of release of 1896 are submitted to exposures of National bank on the history of financial institutions. It is known that on April 21, 1873 the Minister of Finance of the Russian Empire approved the Charter of this bank, and on September 10 he got to work. Representatives of local business became founders of bank. Fixed capital during creation was defined in one and a half million rubles.

According to the Charter the Minsk commercial bank had the right to accounting of bills of exchange, receiving payments on securities and bills of exchange, transactions with precious metals, acceptance of deposits, storage of values, money transfer to the cities where there were its departments. The bank had the representations not only in the territory of Belarus – in Gomel, Mogilev, Pinsk, but also in other cities of the empire: To Libava, Romnakh, Konotop, Zhytomyr, Bila Tserkva, Cherkasy, Fortunetelling, Sumy, Exactly.

1917-1920

As a result of the reform of banking undertaken in the second half of the 19th century in the Russian Empire by the beginning of the XX century the branched credit system was created, banks of new type are organized, appeared and other banking activities gained big development qualitatively. The National bank, incorporated banks, mortgage banks, societies of a mutual credit, city banks, credit cooperation were a part of a credit system. All this represented rather stable, harmonious system up to 1917.

After the victory of the October armed revolt of VTsIK 14 on December (27), 1917 adopted the Decree "About nationalization of banks". Banking appeared the state monopoly, People's Bank of RSFSR was created, on places its offices and departments were established. In the territory of Belarus creation of organizations of People's Bank did not gain broad development in connection with civil war and military intervention. Nevertheless there are data that in March, 1919 in the system of the National commissariat of finance of the Lithuanian-Belarusian republic the Minsk district office of People's Bank was formed. Actually it was the body for supply with bank notes. But already on January 19, 1920. People's Bank of RSFSR and its local bodies including the Minsk district office, were abolished with transfer of all asset and a liability to bodies of the National commissariat of finance of RSFSR.

1921-1924

Then on October 4, 1921. The decree of SNK and VTsIK founded National bank of RSFSR. The Council of People's Commissars of BSSR adopted on December 3, 1921 the resolution on the organization in Minsk of the Belarusian office of National bank (Minutes No. 32 of a meeting of Council of People's Commissars).

The office of the State Bank began to function in Minsk on January 3, 1922. Local offices in Vitebsk, Borisov, Babruysk, Mogilev and the agencies in Slutsk, Mazyr, Orsha, Klimovichakh, Polotsk open.

Due to the formation of the USSR in 1923 the State Bank of RSFSR will be transformed to national bank of the USSR. The Belarusian office also was its part. In January, 1927 turned the Gomel department submitting earlier directly to the State Bank of the USSR into maintaining the Belarusian office.

In 1923-1925 branches of all-union joint-stock banks began to work in the republic: Prombank, All-Union cooperative, and since 1936 – Torgbank. B was created these years the system of local banks. In 1923 the Gomel working bank which approximately in a year was transformed to local utility bank is open. In 1925 Belkommunbank is created.

For the purpose of concentration of available funds for crediting of needs of agriculture district partnerships of an agricultural loan are organized: Belarusian, Gomel, Vitebsk, Orshansky, Kalinin, Babruysk, Mogilev, Mazyr and Polotsk. The Belarusian partnership in 1924 is transformed to Belselbank which undertook the main role on crediting of the village. Activity of the State Bank and specialized banks those years was entirely subordinated to recovery and reconstruction of the national economy.

It was possible to solve these nodal problems only based on sound currency therefore with transition to the New Economic Policy it was headed for strengthening of a monetary system. In 1922-1924 the monetary reform was undertaken. A monetary system is created, and the State Bank became emission center of the USSR and regulating authority of currency circulation. Introduction of stable currency well affected rise of production and strengthening in general of all economy.

1932-1959

As a result of reorganization of a banking system from 1932 to 1959 in Belarus functioned: Utility bank; offices with branches of the State Bank of the USSR, Prombank of the USSR, Agricultural bank of the USSR, and till 1957 and Torgbank of the USSR.

1940-1947

In pre-war 1940 in Belarus 10 regional offices and 184 departments of the State Bank functioned. In them 4087 people worked. The Great Patriotic War was this testing for the Belarusian bank workers, as well as for all people. On June 25, 1941 the Belarusian office of the State Bank was evacuated to Tambov, and in November – to Karaganda, in March, 1942 she moved to Bitter. On September 9, 1943 according to the order of SNK USSR it was closed. Resumed the work in October, 1943 and in December moved to Gomel, and in July, 1944 – to Minsk.

One of the most important functions of the state banking system including Belarusian, at all stages of its development is a work on the organization of currency circulation. In this plan a considerable event was holding a monetary reform in 1947.

1959

Soon after end of the recovery period both the corresponding reorganization of a credit and monetary system, and further expansion of credit communications of bank with the national economy were required. In 1959 reorganization of a banking system was carried out. Specialized banks are abolished, and their functions are transferred to the State Bank and Stroybank of the USSR. Since 1959 the banking system of Belarus was provided by organizations of the State Bank and Promstroibank of the USSR.

Large reorganization of a banking system was made also in 1987. The Belarusian republican banks with the branches of the State Bank, Vnesheconombank, Savings bank, Promstroibank, Agroprombank, Zhilsotsbank of the USSR which operated on the principles of self-financing and self-financing are founded.

1990: Creation of the company

The reorganization which began in 1985 laid the foundation of transition of the existing monetary and credit system to a new qualitative status, the beginning of formation of dual banking. In December, 1990 the Supreme Council of the Belarusian SSR adopts Laws "About National bank of the Republic Belarus" and "About banks and banking activity in Republic of Belarus". All organizations of banks of the USSR in the territory of Belarus were announced by its property. Based on the Belarusian republican bank of the State Bank of the USSR the National bank of Republic of Belarus is created. Specialized state banks are transformed to joint-stock commercial: Belagroprombank, Belvneshekonombank, Belbusinessbank, Belpromstroybank and also Savings bank.

2020: Blocking of the website hacker grouping of Kiberpartizana

On October 26, 2020 the National bank of Belarus endured cyber attack at which its website failed. Responsibility for blocking was undertaken by anonymous hacker grouping of Kiberpartizana.

The National Bank not really wanted to join a national strike. We overpersuaded them, says in Telegram channel of grouping.

It is about a nationwide strike on October 26, 2020 — it was announced earlier by Svetlana Tikhanovskaya whom the opposition considers the winner of election of the president of Belarus.

Hacker grouping blocked the website of the Central Bank of Belarus

Problems with access to the page of the Belarusian Central Bank began on October 26, 2020 around 13.00 Moscow time and again earned around 3 p.m. The website ceased to be loaded, and browsers announced impossibility to find the IP address of its server.

The press service of the Central Bank confirmed failure of the website caused by cyber attacks. At the same time the regulator did not begin to disclose information on that from where they proceeded.

External DDoS the attack became the reason of time lack of access for Internet users to the website of the National bank of Republic of Belarus observed during the period from 12:45 p.m. till 3 p.m. on October 26, 2020. Now the National bank together with authorized state bodies undertakes necessary measures for ensuring smooth operation of the website of National bank, said in the statement of the regulator.

The websites of the public TV channels, the executive officer the president of Belarus, the Ministry of Internal Affairs, Ministry of Internal Affairs Academy, Belarusian Chamber of Commerce and Industry, etc. also underwent cyber attacks. In particular, online broadcast of evening news on Belarus 1 TV channel was interrupted on September 26. Frames of beating of protesters on street protests were on air shown. The hacker movement "kiberpartizan" arose after the presidential elections which results caused mass protests in Belarus.^[1]

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