Tue, 1 July
18.1 C
Yerevan
USD: 384.47 RUB: 4.90 EUR: 450.83 GEL: 141.25 GBP: 526.80

Armenian banks’ liquidity drops to 25.1% in 2014

YEREVAN, April 2. /ARKA/. The total liquidity level (high-quality liquid assets to total assets) of Armenia’s commercial banks dropped by 4.4 percentage points to 25.1% in 2014, the website of the Central Bank of Armenia (CBA) says.

According to the central bank, the banks’ total liquidity level has dropped smoothly, unlike the current liquidity (high-quality liquid assets to demand liabilities) ratio that dropped by 12.9p.p. from 142.3% in the beginning of 2014 to 129.4% at the end of the year.

This ratio dropped steeply in December, when the central bank raised the currency reserve requirement from 12% to 24% (it is 20% now). Consequently, banks’ current liquidity ratio fell by 5.7 percentage points – from 135% in November to 129.4% in December.

It should be mentioned that Armenian banks are well above the norm requirement of 15% for total liquidity (25.1%) and the norm of 60% for current liquidity (129.4%).

Some analysts say despite the fact that the reserve requirement was lowered to 20%, it is still a high level that puts pressure on bank’s liquidity level. –0—

spot_img

POPULAR

US dollar exchange rate unchanged, euro and ruble rise

The average market exchange rate of the U.S. dollar to the Armenian dram on March 7, 2025, remained at 394.58 drams, unchanged compared to March 6.

Central Bank of Armenia considering introducing long-term mechanisms for insurance against fraud

The Central Bank of Armenia is considering the possibility of introducing mechanisms for insurance against fraud.

Armenia to receive EUR 26 million loan from KfW bank for renewable energy development

Armenia will receive a loan and a grant from the German KfW bank for the implementation of the "Renewable Energy and Energy Efficiency Development" program.

Ratio of loans to deposits in commercial banks of Armenia has improved – WB review

In April 2025, deposits and loans of commercial banks of Armenia increased by 1.5% y/y and 0.8% y/y, respectively, slightly improving the ratio of loans to deposits compared to the figures for the previous year.

Euro falls by 0.62 points to 450.23 drams

The average market exchange rate of the US dollar against the Armenian dram as of June 27, 2025, decreased by 0.59 points compared to June 26 and amounted to 384.32 drams.

LATEST NEWS

spot_imgspot_imgspot_img