Financial System of Armenia. Development, Regulation, Supervision 2013
Introduction
Over 2013, financial system of Armenia reported a dynamic growth trend contributing to the availability of the financial resources and services for the real sector of economy. Assets of financial system increased by around 20 percent and accounted for 77.1 percent of gross domestic product registering an 8.5 percentage point growth over previous year. Parallel to the deepening financial intermediation and in terms of increasing competition among the banks, persistent decreasing trend of credit interest rates and increasing trend of deposit interest rates led to the decrease of interest rate spread.
The Central Bank proceeded with large scale actions aimed at development of financial system, modernization of financial sector regulation framework, financial supervision, consumer rights protection and financial education of various target groups. In 2013, the Central Bank initiated largescale legislative and regulatory reforms aimed at the implementation of Basel III standards. The Central Bank started developing ground for implementing a risk based supervision system for the financial institutions.
Over 2013, the participants of Armenian financial system continued to deliver sustainable growth of main financial indicators (assets, loans, liabilities, deposits, capital and etc.).