Sun, 6 April
5.1 C
Yerevan
USD: 391.22 RUB: 4.63 EUR: 431.28 GEL: 142.08 GBP: 508.39
spot_img

Armenian banks’ capital adequacy ratio is on the rise

YEREVAN, August 17. / ARKA /. Armenian banks’ capital adequacy ratio (the ratio of a bank’s capital to its risks) was the highest in June 2016 over the last four year rising to 17.5%, according to the Central Bank of Armenia.

According to the regulator, the banks’ capital adequacy ratio grew by 1.3 percentage points from the beginning of the year due to the drop in economic growth rate and high growth rate of capital.
Thus, in 2015 the banks’ combined assets grew by 4.67%, while their capital surged by 17.8%. In the first half of 2016 the assets upped only by 0.59% while the capital grew by 8.52%.

Another factor behind the growth of Armenian banks’ capital is capital replenishment, carried out to meet a central bank requirement to become effective from January 1, 2017 that the banks must have at least 30 billion drams worth capital, up from the current 5 billion drams.

According to an ARKA study, the capital adequacy ratio of Armbusinessbank was  12.18%, that of Anelik Bank -12.59% and the figure for VTB Bank (Armenia)  was 12.83%.

The capital adequacy ratio of Ardshinbank was 13.12%, that of  Unibank – 14.59%, Conversebank’s capital adequacy ratio was 15,03%, Inecobank’s was 15.31%, that of HSBC Bank Armenia was  15.78% and that of  the Armenian Development bank – 15,84%.

ACBA-CREDIT AGRICOLE BANK’s capital adequacy ratio was  16.96%, that of Ameriabank 17.15%, Areximbank Gazprombank Group’s ratio was 18.40%, Araratbank – 19.57%, Armeconombank – 20.32% and Artsakhbank – 25.85%. The figure for ArmSwissbank, Prometey Bank, Byblos Bank Armenia, BTA Bank and Mellat Bank was over 30%.

Capital Adequacy Ratio (CAR), also known as Capital to Risk (Weighted) Assets Ratio (CRAR) is the ratio of a bank’s capital to its risk. National regulators track a bank’s CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory capital requirements. This ratio is used to protect depositors and promote the stability and efficiency of financial systems. The minimum ceiling set by Armenia’s Central bank is 12%. ($1 – 478.05 drams). -0-

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

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

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.

LATEST NEWS

spot_imgspot_imgspot_img