Annual Report 2019 slide image

Annual Report 2019

20% 18% 16% 14% 12% 10% 8% 6% Figure 3: 2017 - IV 2018 - I 2018 - II 2018 - III 2018- IV 2019 - I 2019 - II 2019 - III 2019 - IV Foreign currency loans Local currency loans The interest rates of loans provided by the banking system followed mostly a downward trend during the year. Interest rate of loans to legal entities 20% 18% 16% 14% 12% 10% 8% 6% 2017 - IV 2018 - I 2018 - II 2018 - III 2018 - IV Foreign currency loans Local currency loans Figure 4: Interest rate of loans to individuals 2019 - I 2019 - II 2019 - III 2019 - IV The capital adequacy and liquidity ratios that describe the banking system stability continued running above the established thresholds. Specifically, the total capital adequacy ratio amounted to 17.6% (minimum threshold: 12.0%). On the back of expanding loan portfolio, the banking system liquidity persisted at the level almost twice as high as minimum thresholds, pointing to the sufficient liquidity in the banking system. As of the end of 2019, commercial banks' total and current liquidity ratios were 27.1% and 111.7% (minimum thresholds: 15.0% and 60.0%), respectively. The banking system assets-to-GDP and economy lending-to-GDP ratios have grown by 5.9 pp and 3.2 pp to 89.0% and 52.1%, respectively (see Figure 5). ANNUAL REPORT 2019 35 COOPERATION WITH I NTERNATIONAL ORGANIZATIONS INSTITUTIONAL DEVELOPMENT OTHER OBJECTIVES OF THE BANK MAIN CENTRAL BANK OF OBJECTIVES THE REPUBLIC OF ARMENIA
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