How do we regulate
The Central Bank of Armenia wields its authority in alignment with the mandates set forth by Armenian legislation. Through a comprehensive approach, the Central Bank executes its regulatory functions by enacting a series of authoritative instruments, including binding bylaws, guidelines, official clarifications, and circulars.
Delving deeper into its regulatory framework, the Central Bank of Armenia undertakes a multifaceted approach:
- The issuance of licenses to both banks and payment institutions forms a cornerstone of regulatory control. Banks, operating under their banking license, provide whole scope of payment services. You can find more information on the regulation of bank activities by following the link:Payment institutions must obtain one of two specific licenses: one for money transfer and the other for processing and clearing on behalf of third parties. Additionally, institutions holding licenses for money transfer may receive permission to issue electronic money, fostering innovation within Armenia's financial landscape.
- To safeguard the stability and integrity of the financial system, the Central Bank sets forth stringent capital and liquidity requirements for payment institutions. Besides that, Central bank defines requirements for safeguarding customer funds.
- Recognizing the pivotal role of effective leadership, the Central Bank establishes fit and proper criteria for the managers of payment institutions. By upholding robust governance practices, the Central Bank fosters accountability and transparency within the sector.
- In the digital age, the Central Bank acknowledges the paramount importance of cybersecurity and operational resilience. Through the imposition of technical equipment and safety standards, coupled with stringent information security protocols, the Central Bank endeavors to fortify the resilience of payment institutions against emerging operational and security risks.
- With a focus on ensuring stability and efficiency in the financial sector, the Central Bank exercises its authority in granting permission and regulating the operation of Armenian payment systems. This regulatory approach fosters confidence among stakeholders, mitigates systemic risks, and promotes the seamless flow of financial transactions, thereby contributing to the overall resilience and competitiveness of the Armenian financial landscape.
- Recognizing the interconnected nature of global finance, the Central Bank facilitates Armenian participation in foreign payment systems. By extending permissions to Armenian banks, payment institutions and payment system operators for engagement in international payment systems, the Central Bank fosters cross-border financial connectivity and facilitates trade and investment flows.
- Upholding the interests of consumers, the Central Bank stipulates requirements for the issuance and servicing of various payment instruments, such as payment cards and electronic money. By ensuring transparency, fairness, and security, the Central Bank promotes consumer confidence and financial literacy.
- In its commitment to promoting clear and transparent payment transactions, the Central Bank mandates the inclusion of specific details on payment documents (such as payment order, receipt). These requirements, encompassing essential information are carefully specified to ensure accuracy and completeness. By enforcing these standards, the Central Bank aims to enhance transparency in payment transactions, thereby fostering trust and confidence among stakeholders.
- Embracing automation and self-service solutions, the Central Bank sets forth requirements for the installation and operation of automatic self-service devices, empowering banks and payment institutions to deliver accessible and convenient services to customers round-the-clock.
- With the aim of expediting and enhancing the convenience of payments, the Central Bank defines maximum execution times for payments and transfers, ensuring timely and reliable fund transfers.
In addition to these regulatory measures, the Central Bank remains committed to continuous monitoring, evaluation, and adaptation of its regulatory framework to address evolving market dynamics, technological advancements, and emerging risks. Through robust monitoring and proactive engagement, the Central Bank of Armenia endeavors to foster a resilient, inclusive, and dynamic payments ecosystem that underpins the stability and prosperity of the Armenian economy.
You'll find a list of regulatory documents pertinent to this field by following this link: