Stress-testing revealed no problem in Armenia’s financial system

04.06.2013 13:09
Stress-testing revealed no problem in Armenia’s financial system

YEREVAN, June 4. /ARKA/. The Central Bank of Armenia makes various stress-tests every quarter for assessing potential negative effects on the financial system of the country, head of financial system stability and development of the Bank Andranik Grigoryan told a press conference Monday.

These stress tests are from time to time discussed with the WB and the IMF, he said.

Grigoryan said both internal and external risks were assessed in the tests and no problem was found in the country’s financial system.

“Only in case of the most complicated and most pessimistic stress test, we may have the capital adequacy standard below the requirement, which is no problem either as liquidity of Armenian banks is above the required level”, Grigoryan said.

According to the Central Bank, the capital adequacy standard (risk-weighted total capital/assets) was 16.76% for Armenia’s banks in 2012. Minimum requirement set by the Central Bank is 12%. There are 21 banks operating in Armenia today.–0--

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