YEREVAN, February 8. /ARKA/. The total capital of Armenia’s banks grew 30% or by about AMD 200 billion to more than AMD 600 billion in 2016, Nerses Yeritsyan, deputy chairman of the Central Bank of Armenia, said Tuesday in the National Assembly.

He said this increase allows banks to build up their assets.

Yeritsyan also said that Armenia has managed to ensure growth amid adverse developments in neighboring countries. He added that Armenia’s indicators are quite good, compared with other countries of the region.

The central bank’s requirement to banks to increase their statutory capital 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.

In particular, three subsidiaries of foreign banks – ProCredit Bank (Germany), BTA Bank (Kazakhstan) and Areximbank-Gazprombank Group (Russia) – as well as the Armenian Development Bank quit the market.

All these banks merged with other banks of Armenia.

As a result, the two-year recapitalization process ended in a 32.7% increase of the banking sector’s consolidated capital – it grew by AMD 159.8 billion ($328.6 million) to AMD 648.5 billion ($1.3 billion). ($1 – AMD 486.07). -0----