ArmInfo.Banks of Armenia, due to the expected additional requirements for capital adequacy according to Basel 3 (surcharges to the capital adequacy ratio), will face the need to replenish capital. Such an opinion during his speech at the 12th general meeting of shareholders of ARARATBANK OJSC on June 11 was expressed by the Chairman of the Union of Banks of Armenia Artak Anesyan, noting that many banks do not exceed the capital adequacy level by 16%, and the ROE - on average the market is 8.3%.
He explained that the banking system of Armenia faces challenges related to the need to ensure compliance with the standards of Basel 3, technological re-equipment, and in conditions of fierce competition, obtaining sufficient profits for shareholders. At the same time, A. Anesyan noted that the banking system provides for the development of the economy the necessary financial resources, stimulating the development of business entities, expansion and modernization of business, and the creation of new jobs. In this vein, he noted that over the past 12 months the growth of assets, and in particular of the credit investments of the banking system, has accelerated by 16% per annum, which is an impressive indicator. "Credit investments of banks increased by almost $ 900 million per year (April 2019 by April 2018), substantially stimulating private investment and consumption, and contributing to an increase in economic activity in Armenia by 9.2% in April," the head of the Union of Banks noted Armenia. In particular, he noted that over the past 10 years, the banking system of Armenia has proven that it can withstand numerous challenges, including during the two global global financial crises, and even after the velvet revolution, without facing serious problems related to bankruptcy. "This demonstrates the high financial sustainability of the banking system of Armenia, a high level of client confidence, compliance with international criteria in comparison with other countries in the region, and a high level of transparency and accountability of activities," he concluded.