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GOOD RELATIONS OF A NUMBER OF BANKS WITH SOME INSURANCE COMPANIES INFRINGE ON THE FREEDOM OF CHOICE OF THEIR CLIENTS
arminfo
2008-09-03 21:28:00
ArmInfo. The good relations of a number of banks with some insurance
companies infringe on the freedom of choice of their clients, the
chairman of the State Committee on Protection of Economic Competition
Ashot Shahnazaryan said today.
The Committee has started administrative proceedings on the basis
of a written application of the chairman of the Central Bank of
Armenia Artur Javadyan, who says that when granting mortgage or car
loans some banks advise their clients to apply to specific partner
insurance companies.
The Committee says that the clients of ACBA-Credit Agricole Bank,
Areximbank, Byblos Bank and Armbusinessbank are served exclusively
by INGO Armenia insurance company, the clients of Cascade Bank,
Ardshininvestbank and Artsakhbank - by RASKO, Prometey Bank - by Nairi
Insurance. In some cases the banks are direct or indirect founders of
their partner insurance companies. Particularly, Armeconombank holds
20% stake in Sil Insurance, Cascade Capital Holding (Cascade Bank)
- 65% stake in Cascade Insurance with 96% of its clients insuring
their property in that company.
The Committee has ruled that the actions of the above-mentioned nine
banks infringe on fair competition and has warned them. The Committee
has instructed the CB to take measures to ensure equal conditions
for all financial market participants and to inform clients that they
are free to choose whatever insurance company they like.
arminfo
2008-09-03 21:28:00
ArmInfo. The good relations of a number of banks with some insurance
companies infringe on the freedom of choice of their clients, the
chairman of the State Committee on Protection of Economic Competition
Ashot Shahnazaryan said today.
The Committee has started administrative proceedings on the basis
of a written application of the chairman of the Central Bank of
Armenia Artur Javadyan, who says that when granting mortgage or car
loans some banks advise their clients to apply to specific partner
insurance companies.
The Committee says that the clients of ACBA-Credit Agricole Bank,
Areximbank, Byblos Bank and Armbusinessbank are served exclusively
by INGO Armenia insurance company, the clients of Cascade Bank,
Ardshininvestbank and Artsakhbank - by RASKO, Prometey Bank - by Nairi
Insurance. In some cases the banks are direct or indirect founders of
their partner insurance companies. Particularly, Armeconombank holds
20% stake in Sil Insurance, Cascade Capital Holding (Cascade Bank)
- 65% stake in Cascade Insurance with 96% of its clients insuring
their property in that company.
The Committee has ruled that the actions of the above-mentioned nine
banks infringe on fair competition and has warned them. The Committee
has instructed the CB to take measures to ensure equal conditions
for all financial market participants and to inform clients that they
are free to choose whatever insurance company they like.