Banking System Backs from Economic Growth

During 2015 growth of nominal GDP exceeded the growth of main balance indices of the banking system, as a result of which fall of main indices describing mediation of the banking system has been recorded.

As mentioned in Financial Stability Report 2015 of the Central Bank of Armenia, indices for banking system assets-to-GDP and loans-to-GDP have decreased by 6.0 and 5.5 percentage points and comprised accordingly 68.5% and 39.8%.

Indices for deposits (included deposits of non-residents)-to-GDP and money-to-GDP have grown by 0.5 and 0.2 percentage points, comprising respectively 35.4% and 37.1%. During the year total capital of the banking system grew by 9.6% (AMD 44.9), and total assets by 1.4% (AMD 46.2 million).

As a result, indicator of total capital and assets ratio grew by 1.1 percentage point and comprised 14.9%. Growth of total capital was recorded on account of charter capital growth. 9 banks replenished the charter capital by AMD 74.0 million, AMD 68.4 million of which was replenished on account of external sources. As a result, share of participation of non-residents in charter capital of banking system grew by 1.2 percentage points and comprised 67.7%.