YEREVAN, October 26. / ARKA /. Without inflow of additional capital in 2013 Armenia’s banking system would simply stop, according to Yuri Gusev, the acting chairman of the Russian-owned VTB Bank (Armenia), who told ARKA that additional capital is important because consolidation alone will not resolve the regulatory capital problem.
He said the regulatory capital of virtually all banks is at the breaking point, especially of the top five banks. “I believe that the banking sector will benefit from consolidation,” Gusev said. He also argued that Armenia does not need 21 commercial banks which are too many given the size and volume of its economy.
Regarding VTB Bank (Armenia), Gusev said the VTB Group is ready to support its capital adequacy level.
Mikhail Yakunin, head of a VTB Group department in charge of subsidiaries, said the main objective for the Bank is to comply with all existing standards no matter where its subsidiaries are.
VTB Bank (Armenia) was acquired by Russian VTB Group in 2004. The Armenian bank is now fully owned by VTB Bank, which is the second largest in Russia. The Armenian bank runs 69 branches across the country, more than any other bank. -0-
