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Armenian banks’ capital adequacy ratio grew last year to 16.2%

18.02.2016 18:54

Armenian banks’ capital adequacy ratio grew last year to 16.2%

YEREVAN, February 18. /ARKA/. Armenian banks’ capital adequacy ratio (the ratio of a bank’s capital and assets to its risks) in December 2015 increased to 16.2% due to active increase in their capital, as is evidenced by the data of the Central Bank.

The banks’ capital adequacy ratio began to drop in late 2014 November due to the dramatic devaluation of the Armenian dram and resulting financial shocks. Thus, in 2014 November the ratio declined by 0.3 percentage points to 16.1%; in December it fell further to 14.5%, and to 14.3% in January 2015.

However, in February 2015, the figure began to rise amounting to 14.6%; it rose further to 15.1% in March and April. The growth was prompted by a decrease in the total assets and a simultaneous capital growth. Thus, in the first half of the year the banks assets decreased by 3.6%, while their capital increased by 5.4%.

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