Armenia’s banking system gained AMD 30bln profit by end of 2010

PanARMENIAN.Net - Chairman of the Central Bank of Armenia (CBA) Arthur Javadyan said that Armenia’s banking system secured AMD 30bln profit by the end of 2010.

Besides, 17% growth was recorded in assets, 14% - in capitals and 25% - in loans, Javadyan said, summarizing the results of 2010.

He also noted that the level of financial intermediation has increased in the country. “Assets of the banking system currently make 46% of GDP that is 4.1% and 18% higher compared to 2009 and 2008 respectively,” noted Javadyan.

He added that foreign institutional investors’ net cash inflows at the amount of AMD 80bln have also contributed to the intermediation growth.

“Together with internal resources they have been directed to the lending market, what has contributed to expansion of the competitive environment and reduction of interest rates. It should be noted that today several banks offer loans to enterprises with transparent and promising activity at 9-10% annual interest rate,” said Javadyan.