YEREVAN, 8 November. /ARKA/. The liquidity ratio of Armenia’s banking sector is 35.2 per cent, Deputy Chairman of the Union of Banks of Armenia (UBA) Ruben Melikyan said.
‘This indicates that the banking sector is able to meet its short-term needs and can withstand potential financial shocks,’ he said during the presentation of the banking sector indicators at the forum “Regional Challenges and Opportunities in the Framework of Cooperation with European Banks”.
Speaking about the return on equity (ROE) of the banking system, Melikyan noted that this indicator averaged 7 per cent during 2011-2021.
According to the UBA data, the ROE of Armenia’s banking sector is currently 22.1 per cent, while the return on assets (ROA) is 3.7 per cent.
According to the UBA Deputy Chairman, the total assets of Armenia’s banking system are estimated at $25.8bn, the equity capital is $4.4bn, loan portfolio is $14.9bn, and the volume of deposits is $14.8bn.
He also said that the ratio of assets to GDP increased from 56.5 per cent in 2013 to 100.4 per cent in 2023, the ratio of loan portfolio to GDP – from 39.5 per cent to 56.6 per cent, and the ratio of deposits to GDP – from 35.4 per cent to 62.4 per cent.
According to the Central Bank of Armenia’s Financial Stability Report, the ROE of the Armenian banking system in 2023 was 13.5 per cent and ROA was 2.1 per cent. -0-
