Deposits at Armenia’s banks have grown by more than 72% over five years

YEREVAN, November 2. /ARKA/. Deposits at Armenia’s banks have grown by more than 72% over a period between 2010 and 2015, Seyran Sargsyan, deputy chairman of the Union of Banks of Armenia, said Monday at the awarding ceremony of a student contest held as part of the program dedicated to the World Savings Day.

“I can place it on record that public confidence in banks is quite high,” he said. “It is rising and the increasing number of depositors and the growing amounts of deposits prove this.”

Hermine Harutyunyan, head of the Deposit Insurance Fund, on her side, said deposits at Armenia’s banks totaled AMD 1.231 billion in late June 2016 against AMD 1.197 billion in 2015.

She also said that the size of deposit compensations at Armenia’s banks was increased 2.5 times.

As a result, the maximum compensation for dram deposits reached AMD 10 million and for deposits in foreign currencies the amount equal to AMD 5 million.

“This contributed a great deal to the increase of the share of secured deposits in the total amount of deposits,” he said.

Harutyunyan said the share of secured deposits has hit the record high – 39.6%.

In her words, the number of depositors having accounts at banks and deposits accounts continues growing as well, and although the growth slowed down a little this year, it did grow by 5%, compared with the previous year, to 1,800 individuals.

According to the Central Bank of Armenia, residents’ deposits in Armenia’s banks have grown 8.9% since the beginning of this year to AMD 1636.3 billion in late September.

Time deposits have shrunk 11.9% to AMD 1 176.9 billion, while demand deposits have grown 1.9% to AMD 459.3 billion. ($1 – AMD 475.14). –0—–

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