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THERE IS NO BANKING SYSTEM IN ARMENIA, ECONOMIST EDUARD AGHAJANOV SAYS
Noyan Tapan
Aug 30 2007
YEREVAN, AUGUST 30, NOYAN TAPAN. There is no banking system as such
in Armenia, economist Eduard Aghajanov said at the August 30 press
conference.
He said that the most important index characterizing a banking
system is the level of the system's financial mediation in the
economy. According to E.
Aghajanov, official statistics show that the ratio of the crediting
by the Armenian banking system/GDP makes about 9%, including consumer
credits. The ratio of investment credits to GDP makes 7-8%.
The economist noted that the Armenian banks "get awfully big profits"
not from crediting the economy but through fulfilment of other banking
functions. This is the reason why foreign banks take interest in the
RA market of banking services.
Noyan Tapan
Aug 30 2007
YEREVAN, AUGUST 30, NOYAN TAPAN. There is no banking system as such
in Armenia, economist Eduard Aghajanov said at the August 30 press
conference.
He said that the most important index characterizing a banking
system is the level of the system's financial mediation in the
economy. According to E.
Aghajanov, official statistics show that the ratio of the crediting
by the Armenian banking system/GDP makes about 9%, including consumer
credits. The ratio of investment credits to GDP makes 7-8%.
The economist noted that the Armenian banks "get awfully big profits"
not from crediting the economy but through fulfilment of other banking
functions. This is the reason why foreign banks take interest in the
RA market of banking services.