YEREVAN, December 23. /ARKA/. Armenia’s banking sector in the outgoing year has faced a string of serious challenges - slower economic growth, weak economic activity and the worsening solvency of the population have affected the main indicators of banks. At the same time the banks have managed to withstand the arising risks and take steps for improvement. In a bid to comply with new realities the banks have begun the process of replenishment of their authorized stock capital, seeking simultaneously new ways of development and shaping their own business models.

1. Consolidation of banks

The most important event of the year was consolidation of banks. On December 8 Armeconombank and Kazakh BTA Bank officially announced a merger. Two days later it emerged that Inecobank acquired 100% shares of ProCredit Bank, a subsidiary of ProCredit Holding AG&Co.KGa A. This deal was financed by a loan Incobank received from the EBRD. The consolidation of banks was spurred by the Central Bank’s decision to increase from 1 January 2017 the minimum amount of the total capital of commercial banks to 30 billion drams from the current 5 billion drams.

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Things in Armenia’s banking sector will improve before the end of this year, Ashot Osipyan, chairman of Araratbank’s board, told ARKA News Agency on Monday

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An Armenian daily ‘Zhamanak’ (Time) says in its today’s issue that Armenia’s upcoming accession to the Customs Union of Russia, Kazakhstan and Belarus will bring about certain risks for its banking system

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Armenia’s banking sector is expected to grow at least by 10% in the coming five years, Ameriabank Development Director Tigran Jrbashyan said Thursday at a news conference.

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Banking sector of Armenia legalized its Microsoft software fully.

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