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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-
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-