YEREVAN, May 16 (Noyan Tapan). During the last three years, Armenia's banking system has gone through the hardest recovery stage. This opinion was expressed by Central Bank Chairman Tigran Sargsian during the sixth congress of the Union of Banks of Armenia on May 15. According to Sargsian, the financial indices of commercial banks have considerably improved over the last two years (as a result of profitability in 2002). However, it is not sufficient, since the banking system occupies an insignificantly small place in the economy: credits make only 6% of the GDP, overall assets - 17%, means attracted from the economy - 11.6%.
Sargsian stressed the importance of introducing a fund of guaranteeing deposits of physical persons and the credit register in terms of the banking system's development. These measures, the chief banker said, will contribute to an efficient banking risk management. The creation of the ArCa common payment system is also remarkable. Banks are enabled to release international plastic cards through this system. Sargsian also attached importance to the establishment of non-banking credit organizations in the republic, including the foundation of the ACBA Leasing Company.
According to the CB Chairman, a new concept
of corporate governance is expected to be developed and introduced in the future.
This concept will specify the relations between bank owners and government agencies
and will exclude the establishment of banks for the purpose of financing personal
businesses. Sargsian also mentioned that the bank surveillance service is planned
to be withdrawn from the Central Bank system. The Central Bank, meanwhile, will
carry out only monetary policies.