YEREVAN, June 7. / ARKA /. Armenia’s commercial banks have indicated a string of factors which they believe may have a considerable impact on the banking system of the country in 2011 – 2013, the Central Bank of Armenia said in a report on the possible development in the banking system of Armenia in 2011 – 2013.
According to the banks’ forecasts, as a result of slow but steady economic growth of the global economy, the confidence in foreign partners will restore to enhance the customer base. The Armenian banks forecast no drop in the price of gold, copper, oil and grain saying that high prices for raw materials, food and energy which are possible to rise, will lead to the emergence of inflationary pressures in Armenia, but they may serve also as a guarantee of the financial strength of a number of bank customers.
On the issue of interest rates at international markets, some banks are of the opinion that the ongoing monetary policy of low rates at international markets will continue into the future. This policy could lead to both attracting cheap funds from abroad and have a negative impact on the level of interest yields of banks in the placement of funds at a floating interest rate.
At the same time, banks expect the Central Bank of Armenia to further tighten its monetary policy by raising the benchmark refinancing rate. They believe that in coming years Armenian commercial banks will have opportunities to attract cheap funds from abroad due to low interest rates, recovering world economies, particularly in Russia, and also due to increase in prices of nonferrous metals. -0-
