The Central Bank is Likely to Continue the Trend of Reducing the Margin of USD and AMD Loans

The central bank is likely to continue the trend of reducing the margin of USD and AMD loans (emolument of provided loans, the difference of securities), which has been carried out over the last 7-8 years. During a conversation with “Armenpress”, member of the CBA Council Armenak Darbinyan noted that the last years’ decision of the CBA to increase the banks’ capital will foster this program”.” Increasing the capitals of banks should have a positive impact in this area. As the capital increase will allow them to attract greater resources, not only the deposits but also funds of various international organizations and certain costs will be cut down, which were significantly higher in case of smaller banks, “the official said. The Central Bank of Armenia made a decision to increase the total capital of commercial banks from January 1, 2017 to 30 billion AMD instead of 5 billion AMD.

Armenak Darbinyan said that the CBA’s policy seeks to encourage, support and help the banks to attract more resources from international markets. In addition, the Central Bank’s financial education and consumer advocacy department is trying to assist consumers to better orientate among the different credit products, through the abcfinance.am website. “Information about the credit is provided, format of working with the banks is simplified in order for the clients not only to look at the percentage of the loan, but also to choose between different banks, products, be able to plan their budgets, calculate costs and benefits, to avoid facing problems in the future,” the official added.