YEREVAN, July 13. /ARKA/. Risks to financial stability in Armenia are mitigated by banks’ strong capital and liquidity positions, according to the international ratings agency Fitch Ratings.
“Private sector lending growth remained strong at 21.7% year-on-year in the first quarter of 2026. Profitability remained high despite the tapering of extraordinary financial inflows from Russia, providing an additional buffer against potential shocks,” the report notes.
The agency’s analysts also note that deposit dollarization continues to decline, reaching 42.4% in May as a result of regulatory measures, greater confidence in the dram, and currency appreciation.
