Thu, 18 September
14.1 C
Yerevan
USD: 382.94 RUB: 4.61 EUR: 453.25 GEL: 141.01 GBP: 522.45

IFC and International Academy of Business to help Armenian banks strengthen risk management systems

YEREVAN, July 13. /ARKA/. IFC, a member of the World Bank Group, is partnering with IAB International Academy of Business to help Armenian banks strengthen risk management systems, so that they continue providing much-needed finance to businesses, amid the challenges in operating environment, IFC says in a press release.

IFC’s advisory team and IAB International Academy of Business are launching a series of workshops for banks on risk management and non-performing loans (NPLs) over the next 12 months, part of efforts to reinforce the stability of the financial institutions and prevent further NPLs.

The initiative also aims to help financial institutions introduce innovative solutions for small and medium enterprises (SMEs), helping the banks expand this line of business and increase lending to smaller businesses. Access to finance was identified as the main challenge for SMEs by the World Economic Forum’s Global Competitiveness Report 2015-2016.

“Given increased volatility, it can no longer be assumed that financial institutions will continue operating as they used to in the past. Additional measures are required to help develop the foundation of the financial sector and support its growth,” said Araksya Martirossian, CEO of IAB International Academy of Business. “This is an exciting initiative for the development of Armenia’s economy and we are delighted to be partnering with IFC for its delivery.”

“In challenging economic times, financial institutions tend to tighten their lending and focus on mid-size and large businesses. This results in credit becoming less accessible to SMEs,” said Jan van Bilsen, IFC Regional Manager for the South Caucasus. “This initiative aims to help Armenian banks strengthen their risk management practices and continue financing small businesses, a key engine of economic growth.”

The efforts also aim to help Armenian financial institutions understand their capital adequacy models, especially important in light of increased minimum capital regulatory requirements. It is part of the IFC Strengthening Financial Systems in Europe and Central Asia project, funded by the Swiss State Secretariat for Economic Affairs (SECO).

Armenia became an IFC member in 1995. Since then, IFC’s long-term investment commitments have totaled $340 million, including nearly $23 million mobilized from other lenders, financing 47 projects across a range of sectors. IFC has also supported trade transactions worth around $130 million through its trade finance program, and implemented a number of advisory projects focused on private sector development.

In fiscal year 2015, IFC invested almost $18 billion in developing countries worldwide. -0-

spot_img

POPULAR

Freedom Broker Armenia ranks as one of the largest taxpayer in Armenia

Freedom Broker Armenia has been recognized as one of the largest taxpayers in the country, underscoring its leadership in the investment sector and commitment to sustainable business practices.

3.6% inflation registered in Armenia in August

n the consumer market of Armenia, 12-month inflation in August of this year amounted to 3.6%, according to the report of the National Statistical Committee (NSC) of Armenia.

Ranking of most profitable banks in Armenia based on results of first quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the first quarter of 2025.

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Net loan portfolio of Armenian banks in Q2 2025 increased by 6.11% to AMD 6.8 trillion

The combined loan portfolio of 17 Armenia-based commercial banks upped  by 6.11% in Q2 2025 compared to Q1 2025, amounting to AMD 6.82 trillion, according to a ranking compiled by  the ARKA news agency.

LATEST NEWS

spot_imgspot_imgspot_img