Armenian banks have enough capital to resists risks

YEREVAN, February 3. /ARKA/. Armenian banks have sufficient capital to resist potential risks and there is nothing that could jeopardize the country’s  financial stability, the chairman of the Central Bank  Martin Galstyan told reporters on Tuesday.

“The banks were provided with unprecedented liquidity so that they had no  problems with lending,” Galstyan said

He noted that in all likelihood  there will be a certain decrease in the capital adequacy ratio of some banks due to writing -offs of some loans or an increase in the share of non-performing loans.

“However, in general, there is sufficient capital within the banking sector and we do not see any problems in this area,” Galstyan said.

He noted that taking into account the coronavirus crisis and the war in Nagorno-Karabakh, the share of non-performing loans in the loan portfolio of banks has increased, however,  the system expected such developments.

At the same time, he noted that if there are no new opportunities for growth, a decrease in profits is possible. -0–

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