Armenian banks to conservative in 2012

Samvel Chazmachyan is sure that the level of liquidity of the Armenian banking system will allow it firmly resist the recession.

Russian economic Nikolai Kondratiev, known for his analysis and theory of business cycles, predicted the global financial crisis back in 1920s. The current situation, according to Kondratiev, is the “winter of economy”, which can last for some 20 years.

PanARMENIAN.Net - Armenia’s economy again faces new challenges. The new wave of crisis that hit Europe will inevitably affect Armenia and entrepreneurs should be ready for this.

Anyway, Anelik Bank board chairman Samvel Chazmachyan does not succumb to panic. He is sure that the level of liquidity of the Armenian banking system will allow it firmly resist the recession.

It’s worth noting that unlike developed countries, where a large number of banks went bankrupt, Armenian banks withstood the first wave of crisis, without the governmental assistance. Moreover, many of them decided to move forward, despite hard times.

According to the chairman of the Union of Banks of Armenia, Ashot Osipyan, “crises implies changes and correct management is the most important tool to tackle it.”

Meanwhile, credit markets are reducing along with the rise of lending rates, what is certainly harmful for Armenia. The country should think of alternative investments. “We should strengthen the risk management and improve the capital adequacy, be conservative to manage these changes,” Osipyan says.

Partner relations with international financial institutions like the International Monetary Fund and the European Bank for Reconstruction and Development help resolve the problems. “The more lending resources the bank possesses, the lower will be the rates,” Chazmachyan is confident.

The Armenian banking sector is unlikely to see increase in lending rates. With 21 commercial banks operating in the republic, competition is too high, what even led to 2-3% decrease in lending rates in 2011.

Victoria Araratyan / PanARMENIAN News
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