YEREVAN, April 17. / ARKA /. Armenian Armeconombank said today its major shareholders, brothers Khachatur and Saribek Sukiasians, have replenished its capital by 3.6 billion drams.
The bank said the replenishment will increase its regulatory capital and the funds will also be lent to the economy and individuals as consumer loans.
Earlier, on March 20, the third brother, Eduard Sukiasian, had invested 1.2 billion drams into the bank’s capital as a long-term subordinated loan.
In January Armenia’s Central Bank raised the minimum amount of commercial banks’ total capital to 30 billion drams from the current 5 billion drams from January 1, 2017.
The banks established before January 1, 2017 will have to meet the new requirement- that is to have 30 billion drams worth total capital. The measure is aimed at encouraging mergers and consolidation of banks, which is expected to create a sound competitive environment and make banking services more available.
The regulator expects this measure to increase the flexibility and the ability of the banking system to withstand shocks in different economic situations, and help advance financial intermediation.
Armeconombank was established in 1991. Its shares are held by EBRD (20%). The rest is held by three Sukiasians brothers.
The bank’s assets grew by 24% last year. Liabilities grew by 28% to 80.8 billion drams; the capital grew by 0.7% to 11.1 billion drams. Net profits grew by 23.6% to 886 million drams. ($ 1 – 472.28 drams). 0-
