YEREVAN, November 4 /ARKA/. Capital adequacy of Armenia’s banking system at the end of September 2024 was 20.3 percent, according to the banks’ IFRS reports.
At the same time, basic tier 1 capital adequacy is 18.5 per cent, and tier 1 capital adequacy is 18․6 per cent.
The actual average value of the regulatory total capital of the banking system in September 2024 was 1,616.1 billion drams, the average value of the tier 1 basic capital was 1,474.6 billion drams and the average value of the tier 2 capital was 1,476.3 billion drams.
The procedure for calculation of regulatory capital and capital adequacy requirements for banks are established by the Central Bank within the framework of macro-prudential supervision carried out in accordance with the standards of Basel III – International Basel Committee on Banking Supervision․.
According to the established requirements, the minimum amount of total capital for Armenian banks is 30 billion drams. The minimum requirement for total capital adequacy is set at 11 per cent, basic tier 1 capital at 6.2 per cent and tier 1 capital at 8.3 per cent.
In addition, a countercyclical capital buffer (capital adequacy surcharge approved quarterly by the Central Bank) of 1.75 per cent, a conservative capital buffer of 2.5 per cent, and an additional capital requirement (systemic importance buffer) of 1.5 per cent are set for systemically important banks (the list of systemically important banks is approved annually by the Central Bank). ($1 – AMD 387.17) -0-.
