THERE WILL BE SERIOUS CONSOLIDATION PROCESSES IN ARMENIA’S BANKING SYSTEM IN THE NEXT TWO YEARS
arminfo
Wednesday, October 24, 12:03
There will be serious consolidation processes in Armenia’s banking
system in the next two years, Development Manager of Ameriabank Tigran
Jrbashyan said during a press- conference on Tuesday.
He said that today banks in Armenia are facing problems with capital
adequacy and lending. “In some small banks the leverage is alarmingly
low. So, they have two options: either capitalization through organic
growth or recapitalization,” Jrbashyan said.
Financial Manager of Ameriabank Gevorg Tarumyan said that shortly
Armenia will adopt Basel III standard, which implies tougher capital
adequacy requirements and may force some banks to consolidate.
Jrbashyan said that Ameriabank will take an active part in the
consolidation processes. “We have no problems with capital adequacy
and liquidity,” he said.
According to ArmInfo’s Ranking of Commercial Banks of Armenia, as of
July 1 2012 Armenia’s capital totaled 387.3bln AMD (10% more than
July 1 2011), with capital adequacy making up 24.4% against 27.9%
a year before.