Armenian banks must focus on risks characteristic of  21st century – Central Bank governor

YEREVAN, December 16. /ARKA/. The year 2025 proved to be quite favorable for Armenia’s banking sector, yet there are two critical issues that need attention, according to Central Bank Governor Martin Galstyan.

He elaborated that the first issue pertains to the ongoing rise in investments aimed at fighting money laundering and terrorist financing.

“In other words, the banks’ ‘muscle system’ must be increasingly robust to thwart such activities,” he remarked during a press conference on Tuesday.

The second challenge highlighted by the Central Bank Governor is the operational risks that are directly linked to cyber fraud.

“These two issues may not have seemed as significant to us a few years back, when we were more focused on credit risks, the proportion of non-performing loans, and inadequate capital adequacy. I believe we have moved past that phase and should now concentrate on the risks typical of the 21st century,” Galstyan stressed.

As per the regulator’s head, it is highly recommended for banks to also pursue innovation.

“The financial assets or profits they have accumulated over the years should be invested in new products, enhancing the quality of new services, and ensuring their applications are truly outstanding, and there is much work to be done in that area,” Galstyan stated.

According to the ARKA news agency’s ranking based on reports from Armenian banks, the net profit of the Armenian banking system for the third quarter of 2025 reached 107.2 billion drams, reflecting a 15.57% increase compared to the same quarter in 2024. Furthermore, for the first nine months of this year, the profits of banks totaled approximately 307.3 billion drams.

As of September 30, 2025, the total assets of Armenian banks amounted to 11.97 trillion drams (a 20.15% increase compared to the same quarter in 2024), liabilities stood at 9.94 trillion drams (a 20.09% increase), and the total capital volume was 2.03 trillion drams (a 20.44% increase). ($1 – 381.76 drams).-0-

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