IMF Executive Board assesses Armenia’s finance system as stable

The Executive Board of the International Monetary Fund (IMF) assessed Armenia’s financial system as stable, but the compliance with the Basel Core Principles for Banking Supervision rated high – 97%, the Central Bank of Armenia (CBA) told Armenpress.

According to the IMF report, the stability of the financial system has been strengthened, and the flexibility has increased guaranteeing the maintenance of continuity of the financial system. Although the external risks typical to the region remain relevant, the results of the stress tests reveal that the flexibility of absorption of risks by Armenia’s banking system is maintained.

According to the assessment of the IMF Executive Board, Armenia’s banking system was capable of resisting the consequences of 2014 economic slowdown, which has been greatly contributed by a number of macroprudential measures taken by the Central Bank. The level of compliance of the Armenian banking sector’s regulation and supervision processes to the Basel Core Principles for Banking Supervision was rated high – 97%, whereas in 2012 this number was 93%, and in 2005 – 70%.

The IMF Executive Board welcomed the progress recorded in terms of the stability and development of the financial system. They welcomed the progress made by the...