Financial sector of Armenia is sound, banks are well capitalized

07.05.2018 10:06
Financial sector of Armenia is sound, banks are well capitalized

YEREVAN, May 7. /ARKA/. Recent mass protests in Armenia have raised concerns over soundness and stability of the country’s financial system.

On April 23, Serzh Sargsyan resigned as prime minister under the pressure of the protests.

On the same day, Armen Sarkissian, Armenian president, accepted the government’s resignation.

In this connection, the Central Bank of Armenia (CBA), in its address to citizens, urged them to display restraint and not to fall into panic, since Armenia’s financial system is effective and accomplished, and banks have sound liquidity.

The regulator said in its statement that banks have no problems with cash liquidity – their reserves are sufficient, as never before.

It also said that it keeps things under control and has enough instruments for ensuring stability in Armenia’s financial system.

The IMF Office in Armenia, on its side, has confirmed that the country’s financial sector is reliable enough.

“In our view, the financial sector of Armenia is sound. We see that the banking sector is well capitalized and has significant liquidity buffers, which make the banks more resilient to various shocks,” Yulia Ustyugova, IMF Resident Representative in Armenia, told ARKA News Agency.

Moreover, she said, the IMF assessment suggests that the CBA’s international reserves are adequate, while the exchange rate has been relatively stable.

“It is important to note, that the CBA is an autonomous institution that has financial stability among its two main objectives,” Ustyugova said.

“The CBA follows solid supervisory and regulatory practices to foster safe and sound banking system. And in fact, Armenia’s banking system has a strong track record navigating through bumpy periods.” --0---

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