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—
