Microfinance organizations
There are three types of Microfinance organizations operating in Armenia
- credit organizations,
- pawnshops,
- exchange offices
Credit Organizations
Credit organizations are financial institutions that provide essential services such as loans. They help support financial inclusion by offering alternatives to traditional banks. Their primary goal is to offer accessible and responsible credit options, helping clients cover personal expenses, invest in small businesses, or manage unexpected costs.
Market Access for credit organizations
For the licensing of credit organizations, requirements are set for capital, corporate governance, technical equipment, premises and other requirements.
Read more
Supervision
The supervision of credit organizations and microfinance organisations by the Central Bank of Armenia is carried out in accordance with risk-based supervisory principles, with priority given to credit organizations that have the right to attract loans through a public offer. Supervisory priorities regarding pawnshops are driven by issues aimed at protecting consumers' interests.Supervisory functions regarding exchange points are based on ensuring compliance with the requirements set by the Law of Armenia on Currency Regulation, as well as other legislative and sub-legislative acts regulating cash foreign currency purchase and sale operations.
Exit from the Market
Legislation
Լist of Microfinance Organizations licences by the Central Bank
List of Micorfinance organizations in the process of liquidation
Pawnshops
Pawnshops are licensed businesses that provide individuals short-term loans secured by movable property.
The Central Bank of Armenia’s supervisory priorities regarding pawnshops are driven by consumer protection objectives. The related processes can be reviewed at the following link:
Foreign currency traders (exchange offices)
Foreign currency traders (exchange offices) specialize in the buying and selling of foreign currencies.
The supervisory functions of the Central Bank of Armenia over currency exchange offices are based on ensuring compliance with the requirements set forth in the RA legislation on foreign exchange regulation, as well as other legislative and sub-legislative acts regulating foreign currency cash transactions.