Financial Sector Assessment : Armenia

The Armenian financial system is quite small, with the assets of the banking system (by far the largest component) accounting for only 15 percent of gross domestic product (GDP). The banking sector has not yet reached the level of consolidation and...

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Bibliographic Details
Main Author:	World Bank
Format:	Financial Sector Assessment Program (FSAP)
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	ACCOUNTING ACCOUNTING STANDARDS ADMINISTRATIVE COSTS ARREARS ASSET MANAGERS AUCTION AUCTION SYSTEM AUCTIONS AUDITING AUDITORS AUDITS BALANCE SHEET BANK BORROWING BANK DEPOSITS BANK FAILURES BANK LENDING BANK LOANS BANK OFFICE BANK PAYMENTS BANKING LAWS BANKING REGULATION BANKING REGULATIONS BANKING SECTOR BANKING SERVICES BANKING SUPERVISION BANKING SYSTEM BANKRUPTCY BONDS BORROWER CAPITAL ACCOUNTS CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITAL BASE CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKETS CASH FLOW CENTRAL BANK CENTRAL DEPOSITORY CIVIL CODE CIVIL SERVICE CLASSIFIED LOANS CLEARING HOUSE COLLECTIVE INVESTMENT COMMERCIAL BANKS CONFLICT OF INTEREST CONSOLIDATION CONSUMER PROTECTION CONVENTIONAL BANKING CORRESPONDENT BANKS CREDIT ARRANGEMENTS CREDIT COOPERATIVES CREDIT CULTURE CREDIT HISTORY CREDIT LINES CREDIT UNIONS CREDITWORTHINESS CURRENCY EARNINGS CURRENT ACCOUNT DEFICIT DEBT DEBTS DEPOSITS DIRECT FOREIGN INVESTMENT DISBURSEMENTS EARNING ASSETS ENFORCEMENT POWERS EQUIPMENT EQUITY SWAPS EXCHANGE RATE EXCHANGE RATE FLUCTUATIONS EXTERNAL DEBT FINANCIAL ACCOUNTING FINANCIAL DATA FINANCIAL INFRASTRUCTURE FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL POLICIES FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL STRENGTH FINANCIAL SYSTEM FLOATING EXCHANGE RATE FORECLOSURE FOREIGN BANK FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY EXPOSURE FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE RISKS FOREIGN INVESTMENT FOREIGN INVESTORS GOVERNMENT EXPENDITURE GOVERNMENT REVENUES GOVERNMENT SPENDING GROSS SETTLEMENT SYSTEM INCOME INCOME FROM GOVERNMENT SECURITIES INFLATION INFORMATION TECHNOLOGY INSURANCE INSURANCE COMPANIES INSURANCE MARKET INTEREST RATE INTEREST RATE RISKS INTEREST RATES INTERNAL AUDIT INTERNAL CONTROLS INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL STANDARDS INVENTORY INVESTMENT CHOICES INVESTMENTS IN GOVERNMENT SECURITIES JOINT-STOCK COMPANIES JUDICIAL SYSTEM LEASE PAYMENTS LEASED ASSETS LEGAL FRAMEWORK LEGISLATION LENDER LENDER OF LAST RESORT LENDING DECISIONS LIFE INSURANCE LIFE INSURANCE COMPANIES LIMITED LIABILITY LIMITED LIABILITY COMPANIES LIQUIDITY LIQUIDITY PROBLEM LIQUIDITY RISKS LOAN LOAN CLASSIFICATION LOAN CLASSIFICATIONS LOAN FINANCING LOAN LOSS PROVISIONS LOAN PORTFOLIO LOAN PORTFOLIO QUALITY LOAN PORTFOLIOS MACROECONOMIC CRISIS MACROECONOMIC INSTABILITY MACROECONOMIC RISKS MARKET DISCIPLINE MARKET ECONOMY MICRO-ENTERPRISES MINIMUM CAPITAL REQUIREMENT MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MONEY LAUNDERING NON-PERFORMING LOANS NONPAYMENT OPEN JOINT-STOCK COMPANIES OPEN MARKET OPERATING COSTS OVERDUE LOANS PAYMENT HISTORY PAYMENTS SYSTEM PENALTIES PENSION PENSION SYSTEM PENSIONS PORTFOLIO QUALITY PORTFOLIOS PRICE STABILITY PROFITABILITY PROVISIONING RULES PUBLIC FINANCES RATES OF INTEREST RATES OF RETURN REAL ESTATE REAL ESTATE COLLATERAL REAL SECTOR REGULATORY AUTHORITY REGULATORY FRAMEWORK REMITTANCES REPO REPOSSESSION RESOURCE MOBILIZATION REVERSE REPO FACILITIES RISK EXPOSURE RISK OF DEFAULT RISK WEIGHTED ASSETS SAVINGS SAVINGS BANK SECURITIES INDUSTRY SECURITIES LAW SECURITIES MARKET SETTLEMENT SHAREHOLDER SHAREHOLDERS SHORT MATURITY SHORT-TERM BORROWING SMALL BANKS SMALL LOANS STOCK EXCHANGE SUBSIDIARIES SUPERVISION OF BANKS SUPERVISORY AUTHORITY SUPERVISORY BOARD SUPERVISORY FRAMEWORK SYSTEMIC RISK SYSTEMIC RISKS TAX TECHNICAL ASSISTANCE TRADING TRADING PLATFORM TRANSITION ECONOMIES TRANSITION ECONOMY TRANSPARENCIES TRANSPARENCY TREASURY TREASURY BILLS VALUATION VALUE OF COLLATERAL
Online Access:	http://documents.worldbank.org/curated/en/2001/05/17885867/armenia-financial-sector-assessment http://hdl.handle.net/10986/15953

Description
Summary:	The Armenian financial system is quite small, with the assets of the banking system (by far the largest component) accounting for only 15 percent of gross domestic product (GDP). The banking sector has not yet reached the level of consolidation and sophistication of the more advanced transition economies, and intermediation costs are high. The results of the stress tests show that the banking system is significantly exposed to a combination of credit and foreign exchange rate risks, but only moderately exposed to interest rate risks. The legal framework governing the financial sector in Armenia is reasonably sound and comprehensive, but decisions by the Central Bank of Armenia (CBA) to withdraw banking licenses and or to initiate bankruptcy proceedings against banks have been successfully appealed in the courts. The authorities have agreed that the law on joint-stock companies should be replaced as soon as possible, and supplemented by a law on limited liability companies. Many of the Basel core principles are largely complied with, but banking supervision needs to be strengthened to bring it more closely into line with international standards.

Financial Sector Assessment : Armenia

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