{"id":84570,"date":"2015-02-17T15:27:52","date_gmt":"2015-02-17T15:27:52","guid":{"rendered":"https:\/\/armbanks.am\/2015\/02\/17\/242367\/"},"modified":"2024-12-15T13:16:22","modified_gmt":"2024-12-15T13:16:22","slug":"armenian-banks-may-face-difficulties-in-attracting-additional-capital-ameriabank-development-director-says","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2015\/02\/17\/84570\/","title":{"rendered":"Armenian banks may face difficulties in attracting additional capital, Ameriabank development director says"},"content":{"rendered":"

YEREVAN, February 17. \/ ARKA \/.<\/strong> Armenian banks may face difficulties in attracting additional capital, Ameriabank Development Director Tigran Jrbashyan said today.<\/p>\n

Speaking at a news\u00a0 conference he said Armenian banking sector\u2019s index of return on capital is 2-3 times lower than in other former Soviet republics, \u2018which means that\u00a0 Armenian banks will face difficulties in raising\u00a0 additional capital, as the risks in the region are identical, while\u00a0 the return is lower.”<\/p>\n

He said in the last three years Armenian banking system developed extensively, while increasing lending was accompanied by a reduction of returns.<\/p>\n

‘In particular, if the pace of development of the banking system over the past three years was higher than the GDP growth rate \u2013 thus the ratio of loans to GDP rose from 40% in 2012 to 47.7% in 2014 to become comparable with Russia\u2019s index, but compared with other countries it still remains at a low level,’ he said..<\/p>\n

According to him, the situation is the same with respect to assets and deposits. Thus, the ratio of assets to GDP at the end of 2014 was 75.8%, while the ratio of\u00a0 deposits to GDP was\u00a0 37.8%, which were\u00a0 higher\u00a0 than in neighboring Georgia, where assets to GDP ratio was 70.1% and the ratio of deposits to GDP was 31.4% , but the figure for Armenia was lower than in Russia or Bulgaria.<\/p>\n

“Under circumstances of high competition, such indicators were achieved at the expense of profitability. In terms of ROA ratio (return on assets) Armenia is ahead of Eastern and Central Europe countries, where\u00a0 ROA is fairly low, but Armenia’s figure is smaller than in other former Soviet republics, which suggests that our assets are used by the banks less effectively,” said Jrbashyan.<\/p>\n

He said also a very important indicator for the banks in terms of capital raising is the ratio of earnings to capital (profitability of capital). Armenia’s rate is 6.9%, while in former Soviet republics it is double-digit.<\/p>\n

In summary, Jrbashyan said the performance indicators of the banking system are quite low, especially of small banks and therefore, to ensure progress banks need to improve their efficiency. -0-<\/p>\n","protected":false},"excerpt":{"rendered":"

Armenian banks may face difficulties in attracting additional capital, Ameriabank Development Director Tigran Jrbashyan said today<\/p>\n","protected":false},"author":1,"featured_media":166762,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[9214,9216],"tags":[12163,13859],"class_list":{"0":"post-84570","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-banks","10":"tag-difficulties"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/84570","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=84570"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/84570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media\/166762"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=84570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=84570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=84570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}