Interest spread of Armenian banks in April 2013 dropped by 1.7 percentage point to 5%

YEREVAN, June 11. / ARKA /. The interest spread of Armenian banks in April 2013 dropped by 1.7 percentage point from a year earlier to 5%, the Central Bank of Armenia.

Interest spread refers to the difference in borrowing and lending rates of financial institutions (such as banks) in nominal terms. It is considered analogous to the gross margin of non-financial companies and is one of the important indicators to assess the banking system of a country.

High interest spread is an indication of systemic risks, when banks are not able to adequately assess lending risks. The Central bank said interest spread for drams decreased by 1.8 percentage points to 5.3%, while that for US dollars declined by 1.6 percentage points to 4.5%.

According to Central Bank data, the average interest rate on loans for the reporting month was 13.8% (a decline of 0.88 percentage points from a year earlier), while the interest rate on deposits was 8.8% (up 0.8 percentage points). ($ 1 – 413.06 drams). -0-

spot_img

POPULAR

Strong banks’ capital and liquidity positions mitigate risks to Armenia’s financial stability – Fitch

Risks to financial stability in Armenia are mitigated by banks' strong capital and liquidity positions, according to the international ratings agency Fitch Ratings.

Armbanks Weekly Digest: Key Events in the Armenian Financial Market (July 6–12)

The week in Armenia's financial market was marked by accelerating annual inflation and activity in the government and corporate securities markets.

Become a Unibank shareholder and benefit from an attractive investment opportunity

Individuals and legal entities can acquire ordinary shares from Unibank’s new share issue until September 9, 2026, at a placement price of AMD 390 per share.

Fitch: Armenia’s International Reserve Adequacy to Remain Below That of Similar-Rated Countries by 2028

Armenia's international foreign exchange reserves have reached a record high, but their sufficiency to cover the country's external needs in the medium term will remain below the average for countries with similar credit ratings, according to a report by the international rating agency Fitch Ratings.

Armenia has benefited from capital transit, but its origins pose reputational risks – Tavadyan

The report of the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) on Armenia documented the country's progress in developing its anti-money laundering and counter-terrorist financing systems, but identified insufficient effectiveness in investigations, prosecutions, and confiscation of criminal assets, as well as the need for stronger oversight in several economic sectors.

LATEST NEWS

spot_imgspot_imgspot_img