Artak Hanesyan: Optimum number of banks for Armenian economy is 10-12

 Some 10-12 banks are enough for Armenian economy. This is an optimum quantity, Artak Hanesyan, Chairman of the Management Board- General Director of Ameriabank CJSC, says.  

According to the CB's requirement, starting 1 Jan 2017 the minimum total capital of Armenia's commercial banks is to grow to 30 bln AMD versus the current 5 bln AMD. This amendment was introduced in Provision 2 "On regulation of the banks' activities and the key economic standards of banking" at the CB Board's 30 Dec 2014 session.  

Hanesyan believes that the CB's new requirement will enable the banking system to enhance stability and ensure their further development.  

For his part, Tigran Jrbashyan, Development Director at Ameriabank CJSC, thinks that the new standard of the minimum total capital will provide new opportunities to raise the banks' status and efficiency. "The years 2015 and 2016 will be the period of market consolidation, when the banks will slightly reduce financing and will focus on recovery and training", says Jrbashyan. He adds that within the next two years the Armenian banking market will experience mergers, acquisitions and emergence of new players. 

According to the Financial Rating of Armenian Banks prepared by the Agency of Rating Marketing Information (ArmInfo), as of 1 Jan 2015, the total capital of the Armenian banking system was 488.7 billion AMD (over $1 billion, 4.2% year-over-year growth, 2.1% decline). At the moment, there are 21 commercial banks in Armenia.