Friday, December 29 2017 07:57
Karine Melikyan

Artur Javadyan: Armenia`s banking system is highly capitalized and has sufficient liquidity to meet the demand of the economy for loans

Artur Javadyan: Armenia`s banking system is highly capitalized and has sufficient liquidity to meet the demand of the economy for loans

ArmInfo. The Central Bank of Armenia continues its consistent work to ensure price and financial stability. This was announced by the chairman of the Central Bank of Armenia in a traditional New Year reception on December 29 summing up the results of 2017. He noted that since 2015 to date the Central Bank has revised the refinancing rate down to 12 times, a total of 4.5 percentage points to today's 6%, taking into account the risk assessments coming from the outside world and the domestic economy.

According to him, the flexible policy of the Central Bank to some extent mitigated the negative impact of external shocks on the Armenian economy, as evidenced by the recorded smallest fluctuation of economic indicators in comparison with the countries of the region. Now there is a stable inflationary environment, which, coupled with the trend of economic activity and the growth of domestic demand, is the basis of economic growth. 2017 is completed with inflation in the range of the target corridor.  "Just two weeks ago, Fitch agency improved the outlook on Armenia's rating from" Stable "to" Positive ", confirming the rating at" B + ", the main factor of which was the CBA monetary policy, once again estimated by Fitch to be reliable, - A. Javadyan noted.

He added that within the framework of stability and development of the financial system, the actions of the Central Bank are aimed at deepening competition between financial organizations, increasing the term of attracted and placed funds (deposits and credits) and their dedollarization, which is the main prerequisite for further growth of lending to the Armenian economy. The reduction in the degree of dollarization of loans and deposits is also noted by rating agencies, which, in their estimation, is necessary from the point of view of ensuring monetary and financial stability. The banking system, characterized as "highly capitalized", is also stable.

"I highly appreciate the flexibility of the activities of financial institutes, especially banks, as a result of which the objectivity of the Central Bank's policy is more rapidly achieving its goals. Over the past 10 years, the ratio of loans to GDP has increased almost threefold, characterizing the growth of the mediator role of the financial system in the economy. Qualitative changes in the development: a significant growth in banking customers and the availability of services offered, a dynamic reduction in lending rates, etc. As a result of the tightening of the minimum size requirement (from January 1, 2017 - AMD 30 billion), banks today are quite liquid and capitalized to meet the demand of the economy for loans," A. Javadyan said.

In the exposure, he noted that the banking system provided almost 10% growth in assets and loans. "2017 will be completed by the growth of key financial indicators and credit companies, insurance companies and other financial organizations. It is noted that the consistent efforts of insurance companies in the formation and formation of insurance culture among the public are noteworthy and the acceleration of the growth rates of the funds accumulated by pension funds, which already reached 105 billion drams, which is 2% of GDP. The professional management of the funds accumulated by these funds made it possible to ensure high profitability," he said.

In terms of the development of the payment and settlement system, Javadyan mentioned the start of ArCa's cooperation with the Russian MIR system, and this intersystem interaction assumes mutual acceptance of cards of national payment systems in the infrastructures of two countries: ArCa cards in Russia, MIR maps in Armenia.

POST A COMMENT
Input digits     


News
Plastic bank card blank seller tries to break into analytics market  with analytics stolen from ArmInfoPlastic bank card blank seller tries to break into analytics market  with analytics stolen from ArmInfo
Armenian Picsart enters TOP-20 best apps in  world according to  data.aiArmenian Picsart enters TOP-20 best apps in  world according to  data.ai
Armenian Finance Ministry, WB representatives outline future joint  projectsArmenian Finance Ministry, WB representatives outline future joint  projects
Ambassador Anne Louyot: France is ready to continue assisting Armenia in implementation of both short-term programs and long-term strategic reformsAmbassador Anne Louyot: France is ready to continue assisting Armenia in implementation of both short-term programs and long-term strategic reforms
EEC: Industrial cooperation projects of EAEU may be launched no  earlier than  2024EEC: Industrial cooperation projects of EAEU may be launched no  earlier than  2024
Armenia is interested in reaching early consensus on project to form common EAEU gas marketArmenia is interested in reaching early consensus on project to form common EAEU gas market
Health insurance in Armenia will turn into a monster - Tigran  JrbashyanHealth insurance in Armenia will turn into a monster - Tigran  Jrbashyan
In Jany-Nov 2022, trade turnover between Armenia and EAEU states  increased by more than 90% - PashinyanIn Jany-Nov 2022, trade turnover between Armenia and EAEU states  increased by more than 90% - Pashinyan
Armenia`s IT sector records growth of over 50% in 2022Armenia`s IT sector records growth of over 50% in 2022
Armenia`s minister of economy participates in meeting of the  ministers of economy of EAEU member- states Armenia`s minister of economy participates in meeting of the  ministers of economy of EAEU member- states 
Converse Bank receives its second award this yearConverse Bank receives its second award this year
CBA continues to increase countercyclical capital buffer, supporting  banking sector`s resilience to systemic risksCBA continues to increase countercyclical capital buffer, supporting  banking sector`s resilience to systemic risks
AMD 14bln to be allocated to Armenia`s textile industry AMD 14bln to be allocated to Armenia`s textile industry 
Documentary credit system of payments to developers could be  introduced in Armenia Documentary credit system of payments to developers could be  introduced in Armenia 
Seven Armenian regions to get AMD 1bln under subvention programmes Seven Armenian regions to get AMD 1bln under subvention programmes 
FLYONE ARMENIA airline making promotional offer FLYONE ARMENIA airline making promotional offer 
Possibilities of expanding cooperation in energy and transport  between Armenia, Iran discuss in TehranPossibilities of expanding cooperation in energy and transport  between Armenia, Iran discuss in Tehran
CBA: From H2 2023, inflation will gradually approach targeted 4% in  ArmeniaCBA: From H2 2023, inflation will gradually approach targeted 4% in  Armenia
CBA Head: Inflationary pressure to soften in 2023CBA Head: Inflationary pressure to soften in 2023
Central Bank: Volume of deposits of non-residents in Armenian banks  almost doubled in 2022Central Bank: Volume of deposits of non-residents in Armenian banks  almost doubled in 2022
Martin Galstyan: there is one commonality for all regulators today -  no one knows how to regulate the cryptosector wellMartin Galstyan: there is one commonality for all regulators today -  no one knows how to regulate the cryptosector well
Central Bank is considering possibility of increasing countercyclical  capital buffer by 0.5%Central Bank is considering possibility of increasing countercyclical  capital buffer by 0.5%
Central Bank of Armenia maintains its forecast for 2023 on GDP growth  at 4.6%Central Bank of Armenia maintains its forecast for 2023 on GDP growth  at 4.6%
Armenia`s gross international reserves set a new record of $4.112  billion by 2023Armenia`s gross international reserves set a new record of $4.112  billion by 2023
Health insurance in Armenia: Why does social justice contradict  social solidarity in Health Ministry`s compulsory health insurance  concept and what are risks of State Fund control ?Health insurance in Armenia: Why does social justice contradict  social solidarity in Health Ministry`s compulsory health insurance  concept and what are risks of State Fund control ?
Common Aviation Area Agreement between EU and Armenia enters into  forceCommon Aviation Area Agreement between EU and Armenia enters into  force
Armenia`s CB leaves refinancing rate unchanged Armenia`s CB leaves refinancing rate unchanged 
Nikol Pashinyan to take part in EIC meeting in AlmatyNikol Pashinyan to take part in EIC meeting in Almaty
Armenia`s financial authorities continue loan market dedollarization Armenia`s financial authorities continue loan market dedollarization 
60 Armenian IT companies among Armenia`s 1,000 major taxpayers 60 Armenian IT companies among Armenia`s 1,000 major taxpayers 
Armenia`s minister of economy meets with BostonGene company reps Armenia`s minister of economy meets with BostonGene company reps 
Ameriabank leads Armenian mortgage marketAmeriabank leads Armenian mortgage market
Global Finance: Converse Bank is Armenia`s leading bank in Trade FinanceGlobal Finance: Converse Bank is Armenia`s leading bank in Trade Finance
Expert forecasts that growth of business activity in Armenian economy  to reach 7% this year Expert forecasts that growth of business activity in Armenian economy  to reach 7% this year 
Wizz Air to start operating flights to 4 new routesWizz Air to start operating flights to 4 new routes
ZCMC paid unprecedented taxes in 2022, exceeding the figure of the previous year by almost two and a half times.ZCMC paid unprecedented taxes in 2022, exceeding the figure of the previous year by almost two and a half times.
Armenian NPP comments on Azerbaijani Human Rights Commissioner`s call Armenian NPP comments on Azerbaijani Human Rights Commissioner`s call 
Armenia`s IT sector rapidly developing - reps Armenia`s IT sector rapidly developing - reps 
Armenia, Qatar discuss opportunities for investment cooperation Armenia, Qatar discuss opportunities for investment cooperation 
44,929 more officially registered jobs in Armenia as against last  year44,929 more officially registered jobs in Armenia as against last  year
Italian businesses interested in Armenia`s investment environment Italian businesses interested in Armenia`s investment environment 
Vahan Kerobyan raises Artsakh issue at Global Forum on Food and  Agriculture in BerlinVahan Kerobyan raises Artsakh issue at Global Forum on Food and  Agriculture in Berlin
Corporacion America  CEO expresses readiness to increase investments  in ArmeniaCorporacion America  CEO expresses readiness to increase investments  in Armenia
Loss ratio in CMPTL market decreased from 79% to 66% in 2022 Loss ratio in CMPTL market decreased from 79% to 66% in 2022 
Armenian banks record 3-fold growth in net profit in 2022Armenian banks record 3-fold growth in net profit in 2022
Expert: The development of the cryptosector in Armenia is the key to the involvement of new players, the growth of the tax base and jobs   Expert: The development of the cryptosector in Armenia is the key to the involvement of new players, the growth of the tax base and jobs  
901 transactions to amount of over AMD 56bln effected under economic  modernization programme in 2022901 transactions to amount of over AMD 56bln effected under economic  modernization programme in 2022
Armenia`s economy will not be able to withstand the expansion of  Turkish goods- EconomistArmenia`s economy will not be able to withstand the expansion of  Turkish goods- Economist
Armenia`s government to support hotels in Syunik, Vaiots DzorArmenia`s government to support hotels in Syunik, Vaiots Dzor
In Armenia, terms for removing arrest from citizens` accounts to be  reduced to 1-2 days from previous 7 days or moreIn Armenia, terms for removing arrest from citizens` accounts to be  reduced to 1-2 days from previous 7 days or more
Share of Armenia`s authorized capital in  EDB increased to 4.2291%,  while Russia`s stake in EDB decreased  to 44.7878%  Share of Armenia`s authorized capital in  EDB increased to 4.2291%,  while Russia`s stake in EDB decreased  to 44.7878%  
Armenia, Germany discuss number of issues on cooperation in economic  sectorArmenia, Germany discuss number of issues on cooperation in economic  sector
$350mln to invested in Zvartnots International Airport$350mln to invested in Zvartnots International Airport
Declaration of income: We have not achieved tax egalitarianism -  ExpertDeclaration of income: We have not achieved tax egalitarianism -  Expert
In Jan-Nov 2022, Armenian-Georgian trade turnover doubled compared to  2021, amounting to $759 million- PashinyanIn Jan-Nov 2022, Armenian-Georgian trade turnover doubled compared to  2021, amounting to $759 million- Pashinyan
Irakli Garibashvili announces about 70% increase in foreign trade  turnover with ArmeniaIrakli Garibashvili announces about 70% increase in foreign trade  turnover with Armenia
The beneficiary of The beneficiary of "The Power of One Dram" in January is the educational program "Talentum"
Fly Arna airline announces launch of new nonstop flights to Saint  PetersburgFly Arna airline announces launch of new nonstop flights to Saint  Petersburg
Vardan Aramyan: With the current quality and level of investments,  there is no need to talk about the growth of the economy`s potentialVardan Aramyan: With the current quality and level of investments,  there is no need to talk about the growth of the economy`s potential
Ministry of Economy of Armenia expects that ferry service to start  operating in Q1 2023Ministry of Economy of Armenia expects that ferry service to start  operating in Q1 2023
Read more


Exchange rates
03.02.2023
RUB5.63-0.02
USD396.480.44
EUR433.59-1.38
GBP486.01-1.71
CAD297.12-0.77
JPY30.860.14
CNY58.84-0.16
CHF434.31-0.76