Central bank of Armenia worked hard to improve banking supervision system last year
23.06.2008,
23:00
Armenian Central Bank has done a great deal of job modernizing and improving banking monitoring and supervision mechanisms, RA Central Bank Chairman Artur Javadyan has stated.
YEREVAN, June 23. /ARKA/. Armenian Central Bank has done a great deal of job modernizing and improving banking monitoring and supervision mechanisms, RA Central Bank Chairman Artur Javadyan has stated.
“The new functional supervision system clearly distinguishes between the preventive functions and supervision for the sake of a fair market and protection of consumers’ rights,” Javadyan stated at the annual session of the Union of Banks of Armenia held in the town of Dilijan this year.
Javadyan said the approved Law “On Securities” implies maximum flexible and effective regulation of the securities market due to which the commercial banks and credit institutions may now provide investment services on the securities market without acquiring any additional license for it.
“The new law is especially beneficial for the commercial banks specifically given the entrance of the Scandinavian Nazdak-OMX stock market operator to Armenian financial market. Since January 1, 2008, when it acquired ownership of Armenian stock exchange and Central Depositary of Armenia, the Scandinavian company jointly with the Central Bank of Armenia has been implementing a comprehensive program of securities market development,” Javadyan said.
According to the Central Bank Chairman, an essential legal measure for Armenian financial market was the passage of a package of laws regulating the processes of placing mortgage securities and securitization of assets.
“The banks and other financial organizations will use this law to solve the problem of “long-term money”, provide mortgage loans on longer terms and lower interest rates,” he explained.
Besides, the Law “On Turnover of Loan Information and On Activities of Credit Bureaus” was worked out and approved by the government which is sure to provide good potential for the effective development of Armenian financial market.
“This will raise the level of financial mediation, the volumes of available loans, introduction and development of a scoring system, as well as it will provide mechanisms for assessing loan risks and protection of consumers’ rights,” he said.
Javadyan also singled out the efforts for introducing a concept of relieving the banking system supervision, due to which the legal underpinnings underwent a number of changes, lower standards of current and overall liquidity were established, and the currency position standard was removed from the economic standards of the banks. –0—
“The new functional supervision system clearly distinguishes between the preventive functions and supervision for the sake of a fair market and protection of consumers’ rights,” Javadyan stated at the annual session of the Union of Banks of Armenia held in the town of Dilijan this year.
Javadyan said the approved Law “On Securities” implies maximum flexible and effective regulation of the securities market due to which the commercial banks and credit institutions may now provide investment services on the securities market without acquiring any additional license for it.
“The new law is especially beneficial for the commercial banks specifically given the entrance of the Scandinavian Nazdak-OMX stock market operator to Armenian financial market. Since January 1, 2008, when it acquired ownership of Armenian stock exchange and Central Depositary of Armenia, the Scandinavian company jointly with the Central Bank of Armenia has been implementing a comprehensive program of securities market development,” Javadyan said.
According to the Central Bank Chairman, an essential legal measure for Armenian financial market was the passage of a package of laws regulating the processes of placing mortgage securities and securitization of assets.
“The banks and other financial organizations will use this law to solve the problem of “long-term money”, provide mortgage loans on longer terms and lower interest rates,” he explained.
Besides, the Law “On Turnover of Loan Information and On Activities of Credit Bureaus” was worked out and approved by the government which is sure to provide good potential for the effective development of Armenian financial market.
“This will raise the level of financial mediation, the volumes of available loans, introduction and development of a scoring system, as well as it will provide mechanisms for assessing loan risks and protection of consumers’ rights,” he said.
Javadyan also singled out the efforts for introducing a concept of relieving the banking system supervision, due to which the legal underpinnings underwent a number of changes, lower standards of current and overall liquidity were established, and the currency position standard was removed from the economic standards of the banks. –0—
