Armenia needs to have a few large banks – ex-chairman of central bank says

30.01.2017 20:51
Armenia needs to have a few large banks – ex-chairman of central bank says

YEREVAN, January 30. /ARKA/. Armenia needs a few commercial banks with large capital, Bagrat Asatryan, the former chairman of the Central Bank said today. Speaking at a news conference he said the overall number of non-performing loans surged last year, as a result, some of the banks closed the year with losses. In his words, although the overall situation improved last year, however, the Central Bank’s decision that the statutory capital of banks must grow from 5 billion drams to 30 billion drams effective from January 1, 2017, did not produce significant results.
"The decision was a technical step; even 30 billion drams are not sufficient for local banks to enter the global financial market to attract cheap resources," Asatryan said. He said in the neighboring Georgia there is already a bank whose capital is commensurate with Armenia’s entire banking system.
According to Asatryan, the Central Bank should continue pushing for new consolidations and mergers of the banks.

The decision of the Central Bank of Armenia to raise the statutory capital of the banks from 5 billion drams to 30 billion drams, effective from January 1, 2017, prompted mergers and acquisitions. As a result, of 21 banks there remain now 17.

The aggregate assets of 17 commercial banks operating now in Armenia grew by 16.5% in 2016 to 4.049.8 trillion drams. Similarly, the banks’ lending last year increased by 20.1% to 2.538.5 trillion drams. The top five largest banks were Ameriabank, Ardshinbank, Armbusinessbank, ACBA-CREDIT AGRICOLE BANK and Anelik Bank. Together they accounted for 54.2% of the total assets of all 17 banks. In terms of money the figure was worth 2.194.7 trillion drams.

Of 17 operating banks 14 banks increased their assets. The largest growth was reported by Anelik Bank, whose assets actually tripled. It was followed by Araratbank, up 63.3% and Byblos Bank Armenia - 61% growth. The largest decline were posted by VTB Bank (Armenia) (25.01%) and HSBC Bank Armenia (21.6%). ($1 – 486.48 drams). --0--


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