Publication: Financial Sector Assessment : Armenia
Date
2001-05-07
ISSN
Published
2001-05-07
Author(s)
World Bank
Abstract
The Armenian financial system is quite
small, with the assets of the banking system (by far the
largest component) accounting for only 15 percent of gross
domestic product (GDP). The banking sector has not yet
reached the level of consolidation and sophistication of the
more advanced transition economies, and intermediation costs
are high. The results of the stress tests show that the
banking system is significantly exposed to a combination of
credit and foreign exchange rate risks, but only moderately
exposed to interest rate risks. The legal framework
governing the financial sector in Armenia is reasonably
sound and comprehensive, but decisions by the Central Bank
of Armenia (CBA) to withdraw banking licenses and or to
initiate bankruptcy proceedings against banks have been
successfully appealed in the courts. The authorities have
agreed that the law on joint-stock companies should be
replaced as soon as possible, and supplemented by a law on
limited liability companies. Many of the Basel core
principles are largely complied with, but banking
supervision needs to be strengthened to bring it more
closely into line with international standards.
Link to Data Set
Citation
“World Bank. 2001. Financial Sector Assessment : Armenia. © Washington, DC. http://hdl.handle.net/10986/15953 License: CC BY 3.0 IGO.”