Tue, 4 March
3.1 C
Yerevan
USD: 393.69 RUB: 4.40 EUR: 411.09 GEL: 141.36 GBP: 497.94
spot_img

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

Net inflow of remittances to Armenia from abroad decreased by 1.7 times in January

The net inflow of cross-border transfers to individuals in Armenia, received from abroad through the banking system of Armenia, amounted to $18.7 million in January 2025, compared to $32.8 million in January 2024, according to the report from the Central Bank of Armenia.

Euro exchange rate plummets by 3.34 points

The average market exchange rate of the U.S. dollar to the Armenian dram on February 28, 2025, amounted to AMD 393.26, having increased by 0.09 points compared to February 27.

Russia may allow payment of authorized capital of financial organizations in Armenian drams

The Federation Council of the Russian Federation approved a law granting the board of directors of the Bank of Russia the right to determine on an annual basis the list of types of foreign currencies that can be contributed to pay for the authorized capital of credit organizations, insurance organizations and non-state pension funds (NPF), TASS reports.

Euro exchange rate rises by 0.91 points

The average market exchange rate of the U.S. dollar to the Armenian dram on February 26, 2025, amounted to 393.51 drams, down 0.04 points compared to February 25.

Government makes its first attempt to regulate the cryptosphere

At a meeting on Thursday, the Armenian government approved the law "On Cryptoassets," aimed at introducing regulations in the areas of cryptocurrency circulation, exchange, and service provision.

LATEST NEWS

spot_imgspot_imgspot_img