ArmInfo. The Central Bank of Armenia should continue stimulating bank system enlargement in Armenia, Economist, former Chairman of the Central Bank of Armenia, Yerevan State University Assistant Professor Bagrat Asatryan said on a press conference on January 30.
At the time the expert noted that he considers the mandatory capitalization set by the regulator (the matter concerns minimal total capital requirement amounting to 30 bln drams, which came into force on January 1, 2017 - editor's note.) not serious, calling it rather a technical step, which does not guarantee the Armenian bank system development. "With the number of 30 bln drams one can not enter international finance market and expect long-term resources available", he said.
Herewith the expert gave as an example the Georgian bank system, where the capital of one big bank exceeds the capital of the entire bank system of Armenia. B. Asatryan is not against small banks in case of big banks present, which will have access to international market.
In general the former Chairman considers CBA the most effective institution in Armenia. "Armenian banks are sustainable enough and liquid. But there is a need to search for more effective development ways. And I think in coming years it will be reached", he stressed. Nevertheless, the expert finds that there is inconsistency between fiscal and monetary policies, which according to him, adversely effects on economic figures of Armenia.
To recall, the process of consolidation of the banking sector out of necessity to meet the new total capital standard effective from early 2017 started in late 2015. At that time ProCredit Bank (Armenia) and BTA Bank announced their withdrawal from the market, having merged with INECOBANK and Armeconombank, respectively. In the end of 2016 Areximbank-GPB Group and Armenian Development Bank announced about their merger with Ardshinbank and Araratbank respectively. As a result out of 21 banks the number of the banks in Armenia declined to 17 by 2017.