YEREVAN, May 25. /ARKA/. Unexpected losses of the Armenian banking system on the horizon of three-year stress testing at the Central Bank are estimated at about 2% of risk-weighted assets, or about 185 billion drams, said Martin Galstyan, Chairman of the Central Bank of Armenia, presenting the financial stability report for 2025.
According to him, the accumulated effect of two increases in the countercyclical capital buffer is estimated by the Central Bank at approximately 175 billion drams – this buffer can cover possible losses in the event of an unfavorable scenario.
Galstyan explained that the implementation of unfavorable external events is considered as an initial shock in macrostress tests. “Through various external and internal channels, this could lead to a sharp decline in economic growth, rising exchange rates and interest rates, and significant inflationary pressures. The shocks are expected to have their main impact during 2026-27, after which their impact will gradually fade,” he said.
According to the head of the Central Bank, the stress testing included different scenarios, including extremely pessimistic ones.
“The banking system is currently characterized by fairly high capital and liquidity buffers, so the summary results of macro stress testing indicate that even in the case of an extremely pessimistic scenario, the system is able to absorb possible losses while maintaining the continuity of the financial intermediation function,” Galstyan emphasized.
In the banking system of Armenia, the total net profit (after tax) in the first quarter of 2026 amounted to 103.48 billion drams compared to 101.18 billion drams for the first quarter of 2025, an increase of 2.27%.
According to bank reports under IFRS, the total assets of banks as of March 31, 2026 amounted to 13.15 trillion drams (an annual increase of 16.67%), the volume of bank credit investments – 8.01 trillion. drams (growth by 22.63%), total liabilities – 10.85 trillion. drams (growth by 15.76%, capital – 2.3 trillion drams (growth by 21.16%). ($1 – 368.01 drams)
