There will remain 17-18 banks in Armenia in one year
26.05.2016,
15:58
By 2017 there will remain 17 or 18 commercial banks in Armenia that will meet the new regulatory requirement of the Central Bank concerning total capital size, the chairman of the Union of Banks of Armenia (UBA) Samvel Chzmachyan said Thursday at a meeting of the International Banking Council in Yerevan.
YEREVAN, May 26. /ARKA/. By 2017 there will remain 17 or 18 commercial banks in Armenia that will meet the new regulatory requirement of the Central Bank concerning total capital size, the chairman of the Union of Banks of Armenia (UBA) Samvel Chzmachyan said Thursday at a meeting of the International Banking Council in Yerevan.
Last year Armenia’s Central Bank decided to raise the minimum amount of commercial banks’ total capital to 30 billion drams (about US$64 million) from the current 5 billion drams, effective from January 1, 2017.
According to the regulator, the banks established before January 1, 2017 will have to meet the new requirement- that is to have 30 billion drams worth total capital. The measure is said to be aimed at encouraging mergers and consolidation of banks, which is expected to create a sound competitive environment and make banking services more available.
Chzmachyan noted that more than half of the banks in Armenia have already met the revised requirement, adding that the banks that will not be able to meet it will have to either leave the market, merge with other banks or transform into credit organizations.
In 2015, according to Chzmachyan, the authorized capital of Armenian banks grew by 74 billion drams (about US$150 million.). He added that major shareholders of commercial banks are expected to replenish the capital of their banks to meet the required level.
In May 2016 ProCredit Bank was acquired fully by Inecobank. In the same month, the Central Bank has confirmed the pre-merger agreement of BTA Bank and Armeconombank. -0-
Last year Armenia’s Central Bank decided to raise the minimum amount of commercial banks’ total capital to 30 billion drams (about US$64 million) from the current 5 billion drams, effective from January 1, 2017.
According to the regulator, the banks established before January 1, 2017 will have to meet the new requirement- that is to have 30 billion drams worth total capital. The measure is said to be aimed at encouraging mergers and consolidation of banks, which is expected to create a sound competitive environment and make banking services more available.
Chzmachyan noted that more than half of the banks in Armenia have already met the revised requirement, adding that the banks that will not be able to meet it will have to either leave the market, merge with other banks or transform into credit organizations.
In 2015, according to Chzmachyan, the authorized capital of Armenian banks grew by 74 billion drams (about US$150 million.). He added that major shareholders of commercial banks are expected to replenish the capital of their banks to meet the required level.
In May 2016 ProCredit Bank was acquired fully by Inecobank. In the same month, the Central Bank has confirmed the pre-merger agreement of BTA Bank and Armeconombank. -0-
