Armenia’s Central Bank does not seek closure of banks- statement

27.02.2015 18:34
Armenia’s Central Bank does not seek closure of banks- statement

YEREVAN, February 27. / ARKA /. Armenia's Central Bank has shrugged off today speculation that its latest decision to raise the minimum amount of commercial banks’ total capital to 30 billion drams from the current 5 billion drams from January 1, 2017 is designed to force closure of a bank or banks.

In a statement the regulator said a string of comments, prompted by the decision in question are based on ‘abstract judgments lacking complete information.’

‘In some cases the speculation is being made intentionally along with attempts to trigger unfounded concerns among citizens through ‘comments" containing financial terms. What is unacceptable is manipulation with names of banks with an alleged purpose of their protection,' the statement said.

The Central Bank said the decision to raise the minimum amount of banks’ capital is aimed at ensuring the reliability and stability of the banking system, as well as encouraging financial intermediation.

The regulator said this decision is actually the continuation of its long-term policy. It said also this
issue had been discussed for two years with managers and shareholders of the banks who expressed their willingness to support it and already began working in this direction.

The statement said the Central Bank does not have any concerns regarding any of 21 banks operating in the country.

"Armenia's banking system is stable and meets all international standards. Therefore, customers need not worry and they should expect nothing but improving banking services,' the statement said..

There are 21 commercial banks in Armenia and the Pan-Armenian Bank. According to the Central Bank, the banks' assets grew last year by 16% to over 3.41 trillion drams; their liabilities grew by 18.3% to about 3 trillion drams; their total capital upped by 4.2% to 488.7 billion drams, while their net profit slashed by 41% to 27.1 billion. drams. ($1 – 478.76 drams). -0-

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