A. Javadyan: The banking system is quite liquid, capitalized and able  to serve the Armenian economy in the long term

ArmInfo.On December 26, the Central Bank of Armenia held a pre-New Year meeting of representatives of the financial system with acting Prime Minister  Nikol Pashinyan. Businessmen were also invited to this event.

Summing up the results of 2018 in advance, Head of the Central Bank  of Armenia Arthur Javadyan noted that during the whole of 2018 the  Central Bank pursued an expansionary monetary policy, keeping the  refinancing rate unchanged in the face of rising interest rates in  the external market. According to our estimates, the year 2018 will  end with inflation slightly below the target threshold (4%, +/- 1.5 -  Ed. note), which is very important for fixing inflation expectations  and maintaining the population's purchasing power. "

He noted that in 2018, along with the main goal of ensuring price  stability, strengthening the financial stability became the main task  for the Central Bank - this is necessary against the background of  current world events, and the Central Bank efficiently performs the  powers delegated by the Constitution. "This allowed the financial  system to demonstrate flexibility and stability during the domestic  political events of 2018. The largest banks provided substantial  growth in loans and deposits. High growth was observed in both  consumer and mortgage lending, and in lending to the industrial  sector and the construction sector.  The banking system is quite  liquid, capitalized and is able to serve the economy in the long  term. Other participants in the financial system will also sum up the  year with an increase in key indicators ", Javadyan considers.

According to Javadyan, the intermediary role of the financial system  in the economy continues to expand.  Trends in increasing access to  financial services and the maturity of loans, as well as lower  interest rates continue, indicating competition in the financial  system. The Central Bank cooperates with the government and  international financial institutions in order to increase the access  of priority sectors of the economy to credit resources.

He recalled that according to the IMF and the World Bank estimates,  the financial system of Armenia in 2018 demonstrated stability and  ensured 97% compliance with the Basel key principles of banking  supervision.

HA. Javadyan marked the jubilee year 2018 in connection with the 25th  anniversary of the national currency of Armenia - dram, one of the  most important symbols of statehood. In 2018, third-generation  composite (hybrid) banknotes were introduced into circulation with  the best degrees of protection, which will last longer due to the  quality characteristics.  "We managed to form a stable national  monetary and financial system. In recent years, we have faced many  problems - global, regional and domestic. The perception and reaction  of society and businessmen were also different. In these difficult  years, the Central Bank has made maximum efforts to regulate the  market, which are often invisible to the public. But as a result,  macroeconomic stability and financial system stability were ensured,  " the chief banker of Armenia said.  Summing up, the head of the CBA  expressed his gratitude to the staff of financial institutions and  the Central Bank for their efforts and professionalism,  congratulating those present with the upcoming New Year and Christmas  and wishing peace, love and achievements.