YEREVAN, February 17. /ARKA/. Liquidity of Armenia’s commercial banks is above the minimum requirement set by the Central Bank of Armenia, which is 15%.

An analysis by ARKA based on Central Bank’s review of banks for the fourth quarter of 2013 and information from banks shows two banks, Areximbank – Gazprombank Group and Armswissbank, provided a liquidity level of 40% or above – 45.7% and 41.88% respectively.

Four banks had their liquidity within 30%: BTA Bank – 38.89%, HSBC Bank Armenia – 34.7%, Armenian Development Bank – 32.28% and Ameriabank – 31.32%.

Eleven banks have recorded liquidity within 15%: Ardshininvestbank – 29.39%, Bank Prometey – 28.89%, Byblos Bank Armenia – 26.71%, ACBA-CREDIT AGRICOLE BANK – 26.6%, Inecobank – 26.52%, Armswissbank – 21.41%, Artsakhbank – 21.15%, Bank Anelik – 21.10%, Unibank – 20.12%, Bank VTB (Armenia) – 17.24% and ProCredit Bank – 16.19%.

Liquidity levels of Araratbank and Bank Mellat as of the end of 2013 were 52.68% and 51.31% respectively.

In banking, liquidity is the ability to meet obligations when they come due without incurring unacceptable losses. Managing liquidity is a daily process requiring bankers to monitor and project cash flows to ensure adequate liquidity is maintained. Maintaining a balance between short-term assets and short-term liabilities is critical. For an individual bank, clients' deposits are its primary liabilities (in the sense that the bank is meant to give back all client deposits on demand), whereas reserves and loans are its primary assets (in the sense that these loans are owed to the bank, not by the bank).

There are 21 commercial banks with 485 branches operating in Armenia today.–0—