{"id":103140,"date":"2016-11-10T12:04:25","date_gmt":"2016-11-10T12:04:25","guid":{"rendered":"https:\/\/armbanks.am\/2016\/11\/10\/245415\/"},"modified":"2024-12-15T13:26:06","modified_gmt":"2024-12-15T13:26:06","slug":"armenian-banks-capital-adequacy-ratio-in-2016-september-was-the-highest-over-the-last-five-years","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2016\/11\/10\/103140\/","title":{"rendered":"Armenian banks\u2019 capital adequacy ratio in 2016 September was the highest over the last five years"},"content":{"rendered":"<p><strong>YEREVAN, November 10. \/ARKA\/.<\/strong> Armenian banks\u2019 capital adequacy ratio (the ratio of a bank\u2019s capital to its risks) in 2016 September was the highest over the last five years rising to 18.4%, the Central Bank of Armenia said.<\/p>\n<p>According to the regulator, the banks\u2019 capital adequacy ratio grew by 1.3 percentage points from the beginning of the year due to the drop in economic growth rate and high growth rate of capital. Thus, in 2015 the banks\u2019 combined assets grew by 4.67%, while their capital surged by 17.8%. In the first nine months of 2016 the assets upped by 4.2% while the capital grew by 12.8%.<\/p>\n<p>The growth of capital is taking place against the background of active replenishment of capital by the banks and merger processes, prompted by the decision of the Central Bank to raise from\u00a0 January 1, 2017 the minimum total capital to 30 billion drams from the current 5 billion drams.<\/p>\n<p>According to an ARKA study, the capital adequacy ratio of 4 banks was within 14%. They are Anelik Bank \u2013 12.05%, Armbusinessbank &#8211; 12.93%, VTB Bank (Armenia) &#8211; 13.22% and Ardshinbank-13.24%.<br \/>\nSeven other banks\u2019 ratio was within 14-20%. They are HSBC Bank Armenia \u2013 15.86%, Unibank \u2013 15.87 %, Inecobank \u2013 15.97%, Armenian Development Bank \u2013 16.84%, Ameriabank\u2013 17.04%, ACBA CREDIT AGRICOLE BANK \u2013 17.96% and Araratbank \u2013 19.19%.<br \/>\nFive other banks\u2019 capital adequacy ration was within 20-30%. They are Conversebank \u2013 20.44%, Areximbank Gazprombank Group \u2013 22.10%, Armeconombank \u2013 22.67%, Artsakhbank \u2013 28.07% and ArmSwissbank. The capital adequacy ratio of Prometey bank, Byblos Bank Armenia\u00a0 and Mellat Bank was above 30%.<\/p>\n<p>Capital Adequacy Ratio (CAR), also known as Capital to Risk (Weighted) Assets Ratio (CRAR) is the ratio of a bank&#8217;s capital to its risk. National regulators track a bank&#8217;s CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory capital requirements. This ratio is used to protect depositors and promote the stability and efficiency of financial systems. The minimum ceiling set by Armenia\u2019s Central bank is 12%.\u00a0 -0-<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Armenian banks\u2019 capital adequacy ratio (the ratio of a bank\u2019s capital to its risks) in 2016 September was the highest over the last five years rising to 18.4%, the Central Bank of Armenia said<\/p>\n","protected":false},"author":1,"featured_media":157087,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[9214,9216],"tags":[15837,12163,14242,13259,1109],"class_list":{"0":"post-103140","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banks-en-en","8":"category-news","9":"tag-armenia-2","10":"tag-banks","11":"tag-capital-adequacy-ratio","12":"tag-september","13":"tag-1109"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/103140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=103140"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/103140\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media\/157087"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=103140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=103140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=103140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}