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Normative of currency position for Armenian banks will operate soon

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  • Normative of currency position for Armenian banks will operate soon

    Normative of currency position for Armenian banks will operate from
    March-April 2010 - deputy head of central bank

    YEREVAN, January 4. /ARKA/. `Normative of currency position for
    Armenian banks will operate from March-April 2010', said Vache
    Gabrielyan, Deputy Head of Central Bank of Armenia during the
    press-conference on Tuesday. The main goal of introduction of
    normative is to protect banking and financial institutions from
    currency risks.

    By the introduction of the normative, limitations of income and losses
    from currency speculations will also be introduced. CB will not fully
    limit the actions of the banks for getting income from operations. `We
    don't want the banks to have long position when currency assets exceed
    the size of liabilities', he said.

    On October 20, 2009, the Central Bank of Armenia adopted decision on
    definition of special normative of currency position for the banks
    with the term of six months. The normative includes two components -
    maximum ratio between the long position of the bank by each currency
    and its total capital and maximum ratio of total long position by all
    currencies and its total capital. Maximum size of these components is
    defined on the level of 7% and 10% accordingly. The normative will be
    calculated on the daily basis. The action of the normative will be
    effective on October 26, 2009 and the adopted decision of CB will
    operate till April 26, 2010.-0-
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