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

Euro rose against the Armenian dram, while the dollar and ruble continued to decline: Central Bank

The average market exchange rate for the US dollar against the Armenian dram, formed on the Armenian foreign exchange market, fell by 0.34 points on July 29, 2026, compared to July 28, to 366.2 drams.

Armenian banks’ loan portfolio exceeded AMD 8.56 trillion in the second quarter, representing a 23.56% year-on-year increase

The total loan portfolio of Armenian banks as of June 30, 2026, exceeded AMD 8.56 trillion, representing a 23.56% increase compared to June 30, 2025, and a 6.8% increase compared to March 31, 2026.

Euro jumped 3.71 points against the Armenian dram: Central Bank

The average market exchange rate for the US dollar against the Armenian dram, determined on the Armenian foreign exchange market, increased by 0.43 points on July 30, 2026, compared to July 29, to 366.63 drams.

Changes in Byblos Bank Armenia’s Executive Management

Byblos Bank Armenia CJSC announces that the Bank’s Chief Executive Officer Hayk Stepanyan will conclude his tenure with the Bank effective August 1, 2026.

VTB (Armenia): “Stable” Deposit – Up to 10% Per annum and Opening via Mobile App

Retail clients of VTB (Armenia) can open a "Stable" deposit at a rate of up to 10% per annum when deposited in the national currency for a term of 12 months.

LATEST NEWS

spot_imgspot_imgspot_img