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Armenia’s banking system is well capitalized and liquid, but the Central Bank should remain vigilant – IMF

YEREVAN, December 24. /ARKA/. The IMF views Armenia’s banking system as well capitalized and liquid, said Umang Rawat, IMF Resident Representative in Armenia, in an interview with ARKA news agency.

“This is consistent with the Central Bank’s stress tests, which show that the banking system has sufficient capital to withstand a significant shock,” he said.

Nevertheless, Rawat thinks it is important for the Central Bank of Armenia to remain vigilant.

“For example, while some growth in bank lending is a healthy sign of favorable economic conditions, excessive lending growth in certain segments of the credit market may increase certain risks. In particular, the risk that borrowers will face problems repaying their loans as the economic cycle changes.” For these reasons, it is important that the CBA be prepared to use its regulatory and supervisory powers to ensure healthy and sustainable lending growth that does not threaten financial or economic stability,” he emphasized.

According to the ARKA news agency ranking based on Armenian banks’ financial statements, the net profit of the Armenian banking system for the third quarter of 2025 amounted to 107.2 billion drams, an increase of 15.57% compared to the same quarter of 2024. The total assets of all 17 Armenian banks as of September 30, 2025, amounted to 11.97 trillion drams (an increase of 20.15%), liabilities amounted to 9.94 trillion drams (an increase of 20.09%), and total capital amounted to 2.03 trillion drams (an increase of 20.44%). ($1 – 381.55 drams)

Read the full interview here.

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