YEREVAN, October 18. /ARKA/. The capital adequacy ratio of Armenia’s banking sector as of June 2021 was 17%, as much as in June 2020, the Black Sea Trade and Development Bank (BSTDB) said in a report.
“Improvement in asset quality has been observed in most of the Black Sea region, which is especially important for countries where non-performing assets are historically high , such as Greece and Ukraine. Stable profitability and continued improvement in asset quality indicate the banking sector’s ability to absorb shocks and maintain adequate capital and liquidity cushioning,” the report says.
BSTDB analysts point out that good financial condition allows the banking sector to grow rapidly in most of the region’s countries.
“The growth rates of deposits and credit aggregates in many BSTDB member countries continue to remain double-digit. The growth of the banking sector is supported by expansionary fiscal and monetary policies in these countries. At the same time, strong lending growth supports economic activity and helps countries quickly recover from the pandemic crisis,” the report says. -0-
