Capability of Armenia’s banking sector to absorb risks is quite high, central bank

YEREVAN, November 6. /ARKA/. The capability of Armenia’s banking sector to absorb risks is quite high, Andranik Grigoryan Andranik Grigoryan, head of a Central Bank department overseeing the financial system’s stability and development, told reporters on Tuesday.

He said for more than a decade the country’s financial system continues to remain effective and stable, and the capability of the system to withstand both external and internal risks is increasing.

“The capability of the banking sector to absorb risks in 2019 remained at a high level and, compared with 2018, there is an improvement in indicators, in particular, regarding macroeconomic risks, which has been prompted by economic development and certain external impulses,” Grigoryan said.
He said also the financial system in the first half of the year continued to be quite liquid, and the level of financial intermediation deepened, reflecting on the level of loans provided by banks and the amount of new deposits.

According to him, no risks were recorded in the first half of the year because of high economic growth, positive developments in the labor market, as well as in the context of a stimulating monetary policy.
He said in terms of liquidity, the banking system is twice the standard indicator, which means that it is sufficiently liquid, being able and at any time to satisfy any requirements of customers, provide various types of instruments and attract deposits.

‘A sufficient level of liquidity is one of the achievements of the banking system,” said Grigoryan.
According to him, a similar situation is seen in terms of the proportionality of capital, which indicates the stability of financial institutions, in particular, the banks and their ability to withstand various unpredictable developments.

“According to the standards, this indicator should be 12% (the ratio of the total regulatory capital and risky assets), while today its weighted average is 17.4%. This indicates the stability of the banking system and the ability to withstand various shocks,” said Grigoryan. He mentioned also an increase in mortgage and consumer lending, saying that the Central Bank does not view it as a reason for accumulation of risks in the context of financial stability.

“We monitor the situation and the growth of lending, including the accumulation of the debt burden of the population. If it reaches a threatening indicator, we have the necessary tools to use,” Grigoryan said. –

spot_img

POPULAR

Armenia has benefited from capital transit, but its origins pose reputational risks – Tavadyan

The report of the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) on Armenia documented the country's progress in developing its anti-money laundering and counter-terrorist financing systems, but identified insufficient effectiveness in investigations, prosecutions, and confiscation of criminal assets, as well as the need for stronger oversight in several economic sectors.

Ranking of the Most Profitable Armenian Banks for the First Quarter of 2026

ARKA News Agency has published a ranking of the most profitable Armenian banks for the first half of 2026.

Converse Bank Named Armenia’s Best Digital Bank for Consumers by Euromoney

Converse Bank has been named Armenia’s Best Digital Bank for Consumers by the internationally renowned financial publication Euromoney

Dollar and euro exchange rates against the Armenian dram rose, while the ruble weakened slightly: Central Bank

The average market exchange rate for the US dollar against the Armenian dram, determined on the Armenian foreign exchange market as of July 21, 2026, increased by 0.75 points compared to July 20, reaching 366.68 drams.

Armenian banks increased net profit to 219.7 billion drams in the first half of the year

The combined net profit (after tax) of Armenian banks in the first half of 2026 amounted to 219.72 billion drams, compared to 200.7 billion drams in the same period of 2025, an increase of 9.48%.

LATEST NEWS

spot_imgspot_imgspot_img