ArmInfo. The banking system of Armenia is stable and fairly capitalized. This was announced on September 10 by the candidate to the Board of the Central Bank of Armenia, Martin Galstyan in the National Assembly of Armenia. Voting for the candidate Galstyan will be held tomorrow, September 11.
According to the candidate to the CBA Board, the services of the Armenian banking system are available to the population and economic agents, and a high level of market competitiveness allow to reduce the spread at active and passive operations rates and increase the productivity of the activity. As a result, Armenia avoided banking crisis, no bank faced the problem of solvency, Armenia's candidate for membership in the Council of the Central Bank of Armenia stressed. Moreover, due to the reforms implemented, the level of the system's indicators is unprecedented, since the ratio of assets of the banking system to the country's GDP reached 80%, and credits / deposits to GDP - 45%.
At the same time, Martin Galstyan stressed that his decisions will be based solely on facts. He noted that in case he was approved for this position he is ready to assure the deputies that the efforts will be aimed at strengthening the Armenian economy and increasing its competitiveness. "In recent years, our studies have shown that interest rates on loans and deposits have significantly decreased, especially for loans," Galstyan said, noting that the profitability of the banking system is 6% -7%, and the margin is 1%. But at the same time he added that the banks pursue certain financial interests, and in the current situation interest rates continue to decline. This, in turn, may lead to a further decline in the level of profitability of banks, which in turn will create certain risks in terms of attracting additional investment in the country's banking system. Martin Galstyan stressed that he assesses this process as extremely negative.
To note, Martin Galstyan directs "Dilijan" training and research center of the Armenian CB.