Armenia’s GDP has grown 40.7% over seven year and key banking indicators have almost doubled
20.03.2019,
10:55
Armenia’s GDP has grown 40.7% over a period between 2012 and 2018 and key banking indicators have almost doubled, Seyran Sargsyan, executive director of the Union of Banks of Armenia, said Tuesday at a news conference.
YEREVAN, March 20. /ARKA/. Armenia’s GDP has grown 40.7% over a period between 2012 and 2018 and key banking indicators have almost doubled, Seyran Sargsyan, executive director of the Union of Banks of Armenia, said Tuesday at a news conference.
“In particular, credit exposure has grown 100.3% over seven years, assets 105.8%, liabilities 109.3%, time deposits 118.5% and capital 88.3%,” he said.
In his words, the ratio of loans to the country’s GDP was 35.4% in 2011, while the year 2018 ended in 54.1%. The deposits-GDP ratio was recorded at 47.7%. “So, it is confirmed that the financial mediation indicator is rising from year to year,” he said.
Sargsyan also said that the total capital of Armenia’s banks amounted to AMD 771.1 billion in late 2018 showing an 11.3% year-on-year growth, the banks’ aggregate assets to AMD 4963.5 billion (14% growth) and credit exposure to AMD 3245.4 billion (13.7% growth).
“This shows that the banking system is intensively developing in Armenia’s economy and that the banks’ mediator activity, particularly attraction and distribution of financial resources is growing from year to year,” he said.
Artak Hanesyan, chairman of the Union of Banks of Armenia and CEO of Ameriabank, on his side, said that the growth of banks’ total capital spurs attraction of new money for banks and other financial organizations.
“One unit of capital allows attracting up to seven units of extra resources, which are mostly used for lending,” Hanesyan said. “Hence, it is possible to imagine what new opportunities this AMD 70 billion creates for financial organizations in terms of attraction of new resources and their allocation for financing the economy and providing loans to individuals.”
In his words, banks’ assets grew as the number of banks shrank. “This shows the growing confidence of clients and international financial organizations in Armenia’s banking system,” he said.
Now 17 banks operate in Armenia. -0---
“In particular, credit exposure has grown 100.3% over seven years, assets 105.8%, liabilities 109.3%, time deposits 118.5% and capital 88.3%,” he said.
In his words, the ratio of loans to the country’s GDP was 35.4% in 2011, while the year 2018 ended in 54.1%. The deposits-GDP ratio was recorded at 47.7%. “So, it is confirmed that the financial mediation indicator is rising from year to year,” he said.
Sargsyan also said that the total capital of Armenia’s banks amounted to AMD 771.1 billion in late 2018 showing an 11.3% year-on-year growth, the banks’ aggregate assets to AMD 4963.5 billion (14% growth) and credit exposure to AMD 3245.4 billion (13.7% growth).
“This shows that the banking system is intensively developing in Armenia’s economy and that the banks’ mediator activity, particularly attraction and distribution of financial resources is growing from year to year,” he said.
Artak Hanesyan, chairman of the Union of Banks of Armenia and CEO of Ameriabank, on his side, said that the growth of banks’ total capital spurs attraction of new money for banks and other financial organizations.
“One unit of capital allows attracting up to seven units of extra resources, which are mostly used for lending,” Hanesyan said. “Hence, it is possible to imagine what new opportunities this AMD 70 billion creates for financial organizations in terms of attraction of new resources and their allocation for financing the economy and providing loans to individuals.”
In his words, banks’ assets grew as the number of banks shrank. “This shows the growing confidence of clients and international financial organizations in Armenia’s banking system,” he said.
Now 17 banks operate in Armenia. -0---
