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ECONOMIST: FINANCIAL CRISIS UNLIKELY TO HIT ARMENIA IN NEAREST FUTURE
ARKA
Oct 28, 2008
YEREVAN, October 28. /ARKA/. Financial crisis is unlikely to hit
Armenia in the nearest future, Russian-Armenian Slavonic University
(Slavonic) University Deputy Rector Edward Sandoyan said in Novosti
International Press Centre on Tuesday.
He said that this certitude is grounded on underdevelopment of
Armenian financial institutions, particularly insurance, pension
security systems and capital market.
"Today Armenia has no financial institutions. Only banking system is
developing successfully", Sandoyan said.
He said that inter-banking credits make only 4% of the resources
attracted by Armenian banks. That is why even if all these means flow
away, it will have no major impact on banks.
Besides, banks' investments on capital market can't trigger crisis,
because of their scantiness.
"Banks have far greater money at their disposal than necessary for
ensuring normal activity", the economist said adding that solvency
of domestic banks is enough to cover banking risks.
"Our banks are capitalized at least twice more than necessary, and
well-secured credit assets make 65% of bank assets", he said.
The economist said that supervision system in banking sector is quite
reliable as well.
22 banks with their 367 branches function in Armenia now. Their assets
totaled AMD 954.1 billion, capital AMD 214.9 billion and liabilities
AMD 739.2 billion by late September.
ARKA
Oct 28, 2008
YEREVAN, October 28. /ARKA/. Financial crisis is unlikely to hit
Armenia in the nearest future, Russian-Armenian Slavonic University
(Slavonic) University Deputy Rector Edward Sandoyan said in Novosti
International Press Centre on Tuesday.
He said that this certitude is grounded on underdevelopment of
Armenian financial institutions, particularly insurance, pension
security systems and capital market.
"Today Armenia has no financial institutions. Only banking system is
developing successfully", Sandoyan said.
He said that inter-banking credits make only 4% of the resources
attracted by Armenian banks. That is why even if all these means flow
away, it will have no major impact on banks.
Besides, banks' investments on capital market can't trigger crisis,
because of their scantiness.
"Banks have far greater money at their disposal than necessary for
ensuring normal activity", the economist said adding that solvency
of domestic banks is enough to cover banking risks.
"Our banks are capitalized at least twice more than necessary, and
well-secured credit assets make 65% of bank assets", he said.
The economist said that supervision system in banking sector is quite
reliable as well.
22 banks with their 367 branches function in Armenia now. Their assets
totaled AMD 954.1 billion, capital AMD 214.9 billion and liabilities
AMD 739.2 billion by late September.