ArmInfo.According to the IMF, the financial system of Armenia is stable, and the compliance with the Basel key principles of banking supervision is high - 97%. According to the press service of the Central Bank of Armenia, according to the IMF report, the stability of the financial system has been strengthened, and the increase in flexibility has become a guarantee of the continued functioning of the financial sector.
Despite the persistence of external risks inherent in the region, stress tests carried out nevertheless indicate that the Armenian banking system retains the flexibility of risk absorption.According to the IMF Executive Board, the banking system of Armenia was able to withstand the effects of the economic downturn of 2014, and this is largely due to the Central Bank of Armenia, which took a number of macro prudential measures.The IMF highly appreciated the compliance of the processes of supervision and regulation of the banking system of the Republic of Armenia with the Basel core principles of banking supervision. According to the IMF, this figure corresponds to 97%, which in comparison with previous years indicates a significant improvement (93% in 2012 and 70% in 2005).
The IMF Council welcomes the progress of stability and development of the financial system of Armenia. Attaching importance to reducing the level of dollarization, the duration and improvement of supervision on the principles of Basel-3, the IMF Council made a number of recommendations.In particular, given the low level of profitability of the banking system, the need to reduce currency risk derivatives - credit risk and liquidity risk, the IMF recommends introducing new liquidity and capital requirements, revising and aligning with international best practices a mechanism for assessing the adequacy of domestic capital, non- performing and restructured loans, financial accounting lending to small and medium enterprises.The IMF Council recommended taking steps to improve financial crisis management processes. In particular, the IMF advised to make these processes smoother and more comprehensive.