Announcement

Collapse
No announcement yet.

Armenia CB Head on Main Tasks and Objects of Development of Banking

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Armenia CB Head on Main Tasks and Objects of Development of Banking

    HEAD OF CENTRAL BANK OF ARMENIA ON MAIN TASKS AND OBJECTS OF
    DEVELOPMENT OF BANKING SYSTEM


    YEREVAN, FEBRUARY 2. ARMINFO. The main reforms in the banking system
    of Armenia, being implemented during the last 5 years, were aimed at
    implementation of 4 main tasks: to ensure growth and competitiveness
    of banks, support for their liquidity and stability, perfection of the
    mechanisms of management of risks, increase of the quality of produces
    and services. Head of the Central Bank of Armenia Tigran Sargsian
    stated during the 15th Conference of regional Group of Basle Committee
    for Banking Supervision of the states of TransCaucasus, Central Asia
    and Russia.

    According to the main banker, high level of competition in the banking
    system is seen during the last 2-3 years, especially in the market of
    crediting and in particular in the segment of consumer crediting. Only
    during 2004 the growth level of the portfolio of the consumer credits
    in the banking system of the country increased by 60%. This process
    accompanied by quite high rates of capitalization and general growth
    of provision of crediting in the economy, which increased by 29% (64.7
    bln drams) and by 37% (139.7 bln drams) respectively. The ration of
    the assets of the banking system (363.6 bln drams) to the GDP makes up
    19%.

    Tigran Sargsian stressed that qualitative changes took place in the
    sphere of liquidity control during the last years. Today the liquidity
    level of the commercial banks is rather high (20-25%) and there are
    serious problems with management of liquid assets, as the real sector
    of the economy is not ready <for example> for large volume of credit
    resources. He stressed that the Central Bank has introduced quite
    effective methods of risk management. He said that the CB Board has
    made a conceptual decision on gradual switchover to new stricter
    standards of banking supervision, based on the principles
    "Basle-2". He mentioned that one should not blame only the real sector
    for the low level of mediation. The real sector is not regulated
    enough and is working in the shadow. The problem is also in the
    spectrum of products and services, which the banking system may offer.

    First of all, the problem often concerns the insufficient level of
    management in the banks. "We have elaborated indices which allow to
    estimate impartially the fact how the commercial banks manage this
    problem. The necessity of introduction of rules of corporative
    management is considered as a strategic direction", Tigran Sargsian
    stressed.
Working...
X