Armenia’s banking system is capitalized significantly above regulatory requirement: Central Bank Governor

YEREVAN, May 29. /ARKA/. Armenia’s banking system is adequately capitalized and has sufficient liquidity buffers, stated Central Bank Governor Martin Galstyan.

“As of March 2026, the capital adequacy ratio was 20.5%, and the liquidity ratio was almost 31%, significantly above regulatory requirements. The non-performing loan ratio, which reflects the share of overdue loans in the total portfolio, is at a historically low level of 1.4%,” he said at an international conference dedicated to the 25th anniversary of the Armenia Securities Exchange.

Galstyan also noted that Armenia’s financial system has undergone significant evolution and development in recent years, significantly increasing in size and deepening financial intermediation.

“Banking system assets now exceed national GDP.” “The share of loans in GDP is approximately 65%, a level comparable to many high-income countries,” he said.

According to the head of the Central Bank, strong indicators are a positive sign of the underlying health of the banking system, including its ability to withstand any unforeseen risks or shocks in the future.

“The combination of price and financial stability, underpinned by a robust institutional framework, provides a critical foundation upon which we can build deeper capital markets in Armenia,” he emphasized.

According to Armenian banks’ financial statements published in accordance with international IFRS standards, their combined net profit (after tax) for 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%).

The total assets of Armenian banks as of March 31, 2026, amounted to 13.15 trillion drams. drams (annual growth of 16.67%), the volume of bank credit investments is 8.01 trillion drams (growth of 22.63%), total liabilities are 10.85 trillion drams (growth of 15.76%), capital is 2.3 trillion drams (growth of 21.16%). ($1 – 368.05 drams).

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