Thu, 3 July
16.1 C
Yerevan
USD: 384.51 RUB: 4.89 EUR: 452.41 GEL: 141.37 GBP: 526.78

Non-performing loans grown more than twice in Armenia in 2015

YEREVAN, March 10. /ARKA/. Non-performing loans soared from 3.7 percent at the beginning of 2015 to above 9 percent towards the end of the year, the World Bank says in its ‘ Armenia’s Monthly Economic Developments’ report.

Higher dollarization and currency mismatches in the balance sheet pose risks to banking sector stability and profitability.

«Total lending declined in 2015 by 3.1 percent with FX-denominated loans suffering the largest contraction reflecting expectation of further dram appreciation,» the World Bank says in its report.

«Commercial banks deposited excess forex at the CBA, which contributed to an increase in gross reserves by US$282 million over 2015. 2016 is expected to be a challenging year for the banking sector as the new requirement for minimum capital will enter into force on January 1, 2017.»

According to the WB forecast, 2016 is expected to be a challenging year for the banking sector as the new requirement for minimum capital will enter into force on January 1, 2017.

On January 1, 2017, the Central Bank of Armenia increased its requirement for commercial banks’ total capital to AMD 30 billion from former AMD 5 billion.

According to the regulator, this measure will lead to consolidation of banks, improve their services and form a healthy competition environment in the banking sector. –0—

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Ranking of Armenia’s most profitable banks in 2024

ARKA news agency has released a ranking of the most profitable commercial banks in Armenia in 2024.

Arka news agency’s ranking of most profitable Armenian banks in 2019

In 2019, Armenia-based commercial banks earned a total of 78.8 billion drams in net profit, up from 56.4 billion drams they had earned in 2018, according to ARKA news agency's ranking of the most profitable commercial banks in the fourth quarter of 2019

Top ten Armenian banks by size of lending in 2019

In 2019, the overall loan portfolio of Armenia's banking sector grew by 16.4% to 3.572.2 trillion drams

LATEST NEWS

spot_imgspot_imgspot_img