Announcement

Collapse
No announcement yet.

Increasing Deposit Insurance Coverage May Force Banks To Raise Price

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Increasing Deposit Insurance Coverage May Force Banks To Raise Price

    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
Working...
X