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INCREASING DEPOSIT INSURANCE COVERAGE MAY FORCE BANKS TO RAISE PRICES OF THEIR PRODUCTS - SAMVEL CHZMACHYAN
YEREVAN, January 26. / ARKA /. A decision of Armenia's Central Bank
to increase the deposit insurance coverage may force the banks to
increase the price of their products, head of the Union of Armenian
Banks Samvel Chzmachyan, said in an interview with the local newspaper
'Golos Armenii' (Voice of Armenia).
Chzmachyan said it is wrong to cite the example of Russia that doubled
bank deposit insurance to 1.4 million rubles ($22,000) in late 2014
December as part of the government's measures to stabilize the domestic
financial system amid the national currency's depreciation.
"In contrast to Russia, where the Central Bank has revoked licenses
of dozens of banks in the last 12 months, the Central Bank of Armenia
did so some 15 years ago,' he said.
Chzmachyan said the Armenian banking system has quite a high liquidity.
"The last time it proved it was last December, when amid the
depreciating dram many depositors rushed to banks to withdraw their
deposits. I know banks, which returned to depositors millions of
dollars in a couple of days and exactly a week later more than half
of those deposits were back to the banks again," he added.
He said the population should not worry about their savings kept
in commercial banks, because irrespective of scenarios there is no
additional risk to their money.
Under the Armenian law on deposit insurance coverage, the maximum
amount of guaranteed deposits in drams is 4 million while insurance
coverage for deposits in foreign currency is the equivalent of 2
million drams.-0-
http://arka.am/en/news/business/increasing_deposit_insurance_coverage_may_force_ba nks_to_raise_prices_of_their_products_samvel_chzma/#sthash.oaiXAMhK.dpuf
From: Baghdasarian
YEREVAN, January 26. / ARKA /. A decision of Armenia's Central Bank
to increase the deposit insurance coverage may force the banks to
increase the price of their products, head of the Union of Armenian
Banks Samvel Chzmachyan, said in an interview with the local newspaper
'Golos Armenii' (Voice of Armenia).
Chzmachyan said it is wrong to cite the example of Russia that doubled
bank deposit insurance to 1.4 million rubles ($22,000) in late 2014
December as part of the government's measures to stabilize the domestic
financial system amid the national currency's depreciation.
"In contrast to Russia, where the Central Bank has revoked licenses
of dozens of banks in the last 12 months, the Central Bank of Armenia
did so some 15 years ago,' he said.
Chzmachyan said the Armenian banking system has quite a high liquidity.
"The last time it proved it was last December, when amid the
depreciating dram many depositors rushed to banks to withdraw their
deposits. I know banks, which returned to depositors millions of
dollars in a couple of days and exactly a week later more than half
of those deposits were back to the banks again," he added.
He said the population should not worry about their savings kept
in commercial banks, because irrespective of scenarios there is no
additional risk to their money.
Under the Armenian law on deposit insurance coverage, the maximum
amount of guaranteed deposits in drams is 4 million while insurance
coverage for deposits in foreign currency is the equivalent of 2
million drams.-0-
http://arka.am/en/news/business/increasing_deposit_insurance_coverage_may_force_ba nks_to_raise_prices_of_their_products_samvel_chzma/#sthash.oaiXAMhK.dpuf
From: Baghdasarian