Tue, 13 January
5.1 C
Yerevan
USD: 380.83 RUB: 4.83 EUR: 444.28 GEL: 141.25 GBP: 512.94

Insufficient capitalization of banks in Armenia one of factors hobbling banking system development

YEREVAN, November 23. /ARKA/. Insufficient capitalization of banks in Armenia is one of the factors hobbling development of the country’s banking system, Yuri Gusev, VTB Bank (Armenia) CEO and chairman of the bank’s directorial board, said Friday at a news conference.

“This is the major threat to the next year’s development, since the bulk of this sector’s key players are short of funds to expand their lending,” he said.

Gusev said that the bank will never violate capital adequacy threshold standards.

“Our capital will always be sufficient for developing both retail and corporate segments – otherwise, our parent organization will help us,” he said.

The capital adequacy threshold standard set by the Central Bank of Armenia is 12%.

According to Armenian banks’ financial reports, their capital adequacy is higher than required – 15% at 15 banks and 12.21 to 15% at six banks.

VTB Bank Armenia (Armenian Savings Bank before June 2006) joined VTB Group in April 2004.

VTB, the second largest bank of Russia, holds 100% of shares of VTB Bank (Armenia). VTB Bank (Armenia) has 69 branches all over Armenia’s territory. VTB Bank (Armenia) is traditionally reckoned among leaders for general indicators. –0—

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Net inflow of remittances to Armenia from abroad increased by 17.9% in the first 11 months of 2025

The net inflow of cross-border remittances to individuals in Armenia, received from abroad through the Armenian banking system, amounted to $1.32 billion in January-November 2025, compared to $1.12 billion in January-November 2024, according to a report from the Central Bank.

Procedure and conditions for providing cashback on transactions with ArCa cards

Starting January 1, Armenia introduced a 2% cashback system for non-cash payments made with ArCa payment system cards.

Armenia’s financial system in December 2025: interest rate declines, lending grows

In December 2025, Armenia's financial market was characterized by a combination of moderate monetary easing, continued high growth rates in bank lending, and the continued development of capital market instruments.

LATEST NEWS

spot_imgspot_imgspot_img