Annual Report 2019
The methodology for calculating actual annual interest rate
has been revised. According to new change, the actual annual interest
rates on credit lines, mortgage and agricultural loans will be calculated
on the same principles, and the cost of credit will be more accurately
reflected. The actual annual interest rates on foreign currency credit
lines, mortgage and agricultural loans calculated by financial
organizations will be comparable, so that consumers will be able to
make the most suitable choice of the loans.
The FinInfo.am, an information system, as well as the rules and
guides related to regulatory arrangement of the system were
developed and improved.
The Central Bank is reviewing and reconsidering the policy of
applications submitted to the Bank; the format of the annual
internal report on the applications received from consumers has
been revised.
Oversight of business conduct
In 2019 the on-site and off-site surveillance of financial
organizations continued.
The on-site surveillance of some financial organizations has
provided for studies which measured the adequacy of delivery of
services, complaint and dispute resolutions, information disclosure
policies and how they were applied, consumer exposures to risk and
legal compliance.
The off-site examinations involved inspecting websites of 40
financial organizations, 182 TV commercials and 278 radio
commercials and revealing about 200 violations. Financial
organizations' radio advertising together with their TV commercials
continued to be monitored on a monthly basis.
The legislative changes on the one hand and the increasingly
active mortgage market on the other require a special approach to
reviewing mortgage loans. In particular, we have examined 22 banks
and credit organizations and looked at internal policies and procedures
establishing the templates to mortgage loan agreements of 35
financial organizations, the templates to contracts and actually signed
contracts. About 150 violations were identified.
ANNUAL
REPORT 2019
55
COOPERATION WITH I
NTERNATIONAL ORGANIZATIONS
INSTITUTIONAL
DEVELOPMENT
CENTRAL BANK OF
OBJECTIVES
THE REPUBLIC OF ARMENIA
OTHER OBJECTIVES OF
THE BANK
MAINView entire presentation