YEREVAN, December 20. /ARKA/.  The financial system remained solid with loans and deposits growing at 2 percent and 2.9 percent (mom), respectively, , the World Bank says in its Armenia monthly economic update – December 2023.

Whereas the increase in loans was due mostly to an increase in AMD-denominated loans, deposits grew due mostly to FX-denominated deposit increases.

In October, the capital adequacy ratio fell marginally by 0.5 percentage points (mom), to 20.1 percent (above the 12 percent requirement), and the ratio of non-performing loans to total loans fell slightly to 2.6 percent.

However, banking system profitability rose as the return on assets picked up from 3.2 percent in September to 3.4 percent in October. -0-