22.10.2015 18:45
YEREVAN, October 22. /ARKA/. Armenian banks became cautious in lending money as the central bank doubled its requirement of mandatory reservation in foreign currencies, Samvel Chzmachyan, the chairman of the Union of Banks of Armenia said in an interview with Zhamanak.
He told the newspaper that banks' cautiousness might strike at their profitability.
According to Armenian banks' quarterly reports, their credit investments have shrunk 4.3% since the beginning of this year to AMD 2 074 billion in late September.
Chzmachyan said the banks have no option but to make reservation in foreign currencies, and it means they have to freeze a major part of their financial resources, taking them from turnover and reducing Armenia's money stock.
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