ArmInfo. Despite the significant stress associated with the coronavirus, Armenia's banking system has shown itself to be stable. Chairman of the Board of Directors of ARARATBANK Grigor Hovhannisyan, Chairman of the Bank's Council, expressed a similar opinion to journalists at the event dedicated to the rebranding of ARARATBANK on September 24.
In this regard, he referred to the results of a macroeconomic study, which indicate that the impact of the pandemic on the banking system of Armenia was not as severe as expected. "The system turned out to be stable," the expert emphasized.
However, he noted that hasty assessments should not be given, since the second wave of the coronavirus has just begun in Europe, and the Armenian banking system is integrated into international financial markets. "Everything will depend on the outcome of the pandemic in the near future. Everything is stable at the moment," Hovhannisyan said. At the same time, he drew attention to the fact that in the conditions of the coronavirus crisis, many banks were forced to meet clients and postpone loan payments, which led to certain losses for the latter. "I think that in order to make up for these losses, the Central Bank has lowered the refinancing rate in order to accordingly somewhat reduce this pressure," he added.
In turn, Executive Director of the Union of Banks of Armenia Seyran Sargsyan added that the pandemic created certain problems, but this did not affect the level of citizens' confidence in the banking system of Armenia. In this context, Sargsyan noted that the majority of citizens continue to keep their savings in banks. In addition, according to him, the fact that non-residents also give preference to the commercial banks of Armenia from the point of view of keeping their funds, speaks about the liquidity, stability and reliability of the banking system.