Consolidation of Armenian commercial banks’ capital is adequate economic process – economist

YEREVAN, September 24. /ARKA/. Consolidation of Armenian commercial banks’ capital is within the frames of normal economic processes and contains no risk, Tatul Manaseryan, an economist and the head of Alternative Research Center, said at a news conference on Wednesday.

«I take consolidation of banks normally and I don’t share fears that many bank employees will lost their jobs creating a social problem,» he said. «Consolidation of banks may drive demand for skilled specialists up.»

In his words, the consolidation process was seen yet before the required minimum size of banks’ total capital was increased – many banks were already merging.

The economist considers the emission of stocks by several banks for capital replenishment as a new business culture in Armenia and thinks this is one of options to those who have to build up their capital.
«Economy can’t be harmed by that, and those who have large capital are able to implement large projects,» he said.

Manaseryan finds the central bank’s policy properly balanced. He said even rich countries couldn’t avoid devaluation of their national currencies and faced major financial problems, while Armenia’s banking sector retained stability.

He said some banks don’t run the risk and are rather anxious to have their lent money returned. Others extend loans secured by immovable property.

However, certain business programs can secure loans, but nothing like this is in practice in Armenia’s banking sector.

«In my opinion, time has come to think about integration of banks with the real sector, and stability should remain the top-priority goal,» Manaseryan said.

The Centarl Bank of Armenia has obliged the country’s commercial banks to have by January 1, 2017 at least AMD 30-billion capital instead of the present AMD 5 billion. –0–

spot_img

POPULAR

Armbanks Weekly Digest: Key Events in Armenia’s Financial Market (July 27–31)

Armenia's financial agenda last week was determined by banking sector data, rating decisions, inflation and public debt forecasts, exchange rate dynamics, personnel changes at Byblos Bank Armenia, and expert assessments of the possible impact of restrictions on goods supplies to Russia.

Moody’s affirms Converse Bank’s ratings and changes outlook to positive from stable

Moody's Ratings has affirmed Converse Bank's long-term deposit ratings at Ba3 and changed the outlook to positive from stable.

Central Bank: Armenia’s current public debt level is not a cause for concern

The current level of Armenia's public debt is not a cause for concern, stated Deputy Governor of the Central Bank of Armenia Hovhannes Khachatryan.

Euro and ruble rose, while the dollar fell: Central Bank

The average market exchange rate of the US dollar to the Armenian dram, formed on the Armenian foreign exchange market, fell by 0.43 points on July 31, 2026, compared to July 30, to 366.2 drams.

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