Sun, 27 July
26.1 C
Yerevan
USD: 383.94 RUB: 4.85 EUR: 450.25 GEL: 141.78 GBP: 516.63

Consolidation of Armenia’s banks has enhanced system’s financial stability and liquidity – central bank

YEREVAN, May 25. /ARKA/. The consolidation of Armenia’s banks has enhanced the system’s financial stability and liquidity, Andranik Grigoryan, chief of the central bank’s division in charge of development of the country’s financial system, told journalists on Wednesday.

“Consolidation of banks and inflow of the capital had positive impacts on the country’s financial system and enhancement of its banking system’s stability significantly increasing its competitiveness and room for serving the economy for long period of time,” he said.

Four consolidations of banks were registered in 2016, he said, and thanks to that only 17 commercial banks remained in the country and their regulatory capital was built up a great deal.

The banks’ aggregate capital grew 38.6%, compared with late 2014.

Grigoryan said referring to results of stress tests that the banking sector’s ability to ward off future risks has enhanced.

Speaking about the normative indicator of banks’ capital adequacy, he said it rose 3.8 percentage points to 20% by the end of the year, and normative indicators of general and current liquidity grew 4.5% and 28.4% to 32.5% and 170.8% respectively.

Grigoryan also said that the share of nonperforming assets in the banking sector shrank as well, and thanks to that, it ended the year in an AMD 32-billion profit.

In late 2014, the central bank raised its requirement to the size of commercial banks’ capital from AMD 5 billion to AMD 30 billion prompting mergers and consolidations.

As a result, of 21 banks only 17 remain in the country. ($1 – AMD 482.13). –0—-

spot_img

POPULAR

A scheme for stealing funds through fake investment platforms  exposed in Yerevan

A criminal group operating in one of the capital's business centers and stealing citizens' money through Internet calls has been exposed in Armenia, the Investigative Committee of Armenia reports.

Fitch expects inflation in Armenia to remain within the target level until 2027

International rating agency Fitch expects inflation in Armenia to remain within the target level until 2027, although soft fiscal policy and the projected moderate weakening of the dram create certain risks.

Fitch forecasts Armenia to tighten fiscal policy after 2027

Fitch Ratings analysts forecast a tightening of fiscal policy by the republic's authorities in a new report on 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.

Armenia’s economy to stabilize on 5.5% growth trajectory in 2025 – EDB forecast

According to EDB forecasts, Armenia's economy will stabilize on a 5.5% growth trajectory with domestic demand remaining the main driver of development.

LATEST NEWS

spot_imgspot_imgspot_img