Capitalization of Armenian banks is at historical maximum - Central Bank

YEREVAN, March 14. /ARKA/. Capitalization of Armenian banks is now at a historical maximum, Deputy Chairman of the Central Bank of Armenia Hovhannes Khachatryan said today.

"During the periods of rapid growth of the financial market, we were on guard to avoid financial shocks. We have seriously increased both countercyclical and systematic buffers," he said at the second Capital Markets Armenia conference organized by Cbonds.

According to Khachatryan, in terms of compliance, the large deals that have come to the Armenian market have not led to serious problems.

"In Armenia, both banks and investment companies worked in accordance with the legislation and standards," he emphasized.

According to the Union of Banks of Armenia, banks made a profit of 230 billion drams in 2023, which is 23.3 billion drams or 9.2% less than in 2022. The assets of 18 banks amounted to AMD 9.1 trillion, liabilities – to AMD 7.7 trillion, capital – to AMD 1.5 trillion and deposits – to AMD 5.7 trillion.

The Central Bank set the countercyclical capital buffer (CCB) at 1.5% on July 5, 2023, keeping it at that level in January this year, "as analysis of the average annual growth rate of consumer loans over the past three years, the decline in the ratio of consumer loans to GDP amid relatively high GDP growth rates indicate that the sector is not currently at significant risk."

ARKA and Novosti-Armenia news agencies are media sponsors of the conference. ($1 - AMD 402.9) -0-.