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Armenian banks to conservative in 2012
Samvel Chazmachyan is sure that the level of liquidity of the Armenian
banking system will allow it firmly resist the recession.
Russian economic Nikolai Kondratiev, known for his analysis and theory
of business cycles, predicted the global financial crisis back in
1920s. The current situation, according to Kondratiev, is the `winter
of economy', which can last for some 20 years.
November 12, 2011
PanARMENIAN.Net - Armenia's economy again faces new challenges. The
new wave of crisis that hit Europe will inevitably affect Armenia and
entrepreneurs should be ready for this.
Anyway, Anelik Bank board chairman Samvel Chazmachyan does not succumb
to panic. He is sure that the level of liquidity of the Armenian
banking system will allow it firmly resist the recession.
It's worth noting that unlike developed countries, where a large
number of banks went bankrupt, Armenian banks withstood the first wave
of crisis, without the governmental assistance. Moreover, many of them
decided to move forward, despite hard times.
According to the chairman of the Union of Banks of Armenia, Ashot
Osipyan, `crises implies changes and correct management is the most
important tool to tackle it.'
Meanwhile, credit markets are reducing along with the rise of lending
rates, what is certainly harmful for Armenia. The country should think
of alternative investments. `We should strengthen the risk management
and improve the capital adequacy, be conservative to manage these
changes,' Osipyan says.
Partner relations with international financial institutions like the
International Monetary Fund and the European Bank for Reconstruction
and Development help resolve the problems. `The more lending resources
the bank possesses, the lower will be the rates,' Chazmachyan is
confident.
The Armenian banking sector is unlikely to see increase in lending
rates. With 21 commercial banks operating in the republic, competition
is too high, what even led to 2-3% decrease in lending rates in 2011.
Victoria Araratyan / PanARMENIAN News
Samvel Chazmachyan is sure that the level of liquidity of the Armenian
banking system will allow it firmly resist the recession.
Russian economic Nikolai Kondratiev, known for his analysis and theory
of business cycles, predicted the global financial crisis back in
1920s. The current situation, according to Kondratiev, is the `winter
of economy', which can last for some 20 years.
November 12, 2011
PanARMENIAN.Net - Armenia's economy again faces new challenges. The
new wave of crisis that hit Europe will inevitably affect Armenia and
entrepreneurs should be ready for this.
Anyway, Anelik Bank board chairman Samvel Chazmachyan does not succumb
to panic. He is sure that the level of liquidity of the Armenian
banking system will allow it firmly resist the recession.
It's worth noting that unlike developed countries, where a large
number of banks went bankrupt, Armenian banks withstood the first wave
of crisis, without the governmental assistance. Moreover, many of them
decided to move forward, despite hard times.
According to the chairman of the Union of Banks of Armenia, Ashot
Osipyan, `crises implies changes and correct management is the most
important tool to tackle it.'
Meanwhile, credit markets are reducing along with the rise of lending
rates, what is certainly harmful for Armenia. The country should think
of alternative investments. `We should strengthen the risk management
and improve the capital adequacy, be conservative to manage these
changes,' Osipyan says.
Partner relations with international financial institutions like the
International Monetary Fund and the European Bank for Reconstruction
and Development help resolve the problems. `The more lending resources
the bank possesses, the lower will be the rates,' Chazmachyan is
confident.
The Armenian banking sector is unlikely to see increase in lending
rates. With 21 commercial banks operating in the republic, competition
is too high, what even led to 2-3% decrease in lending rates in 2011.
Victoria Araratyan / PanARMENIAN News