Annual Report 2019
REGULATION AND
SUPERVISION OF
FINANCIAL SYSTEM
the field of financial system regulation, a number of changes
were introduced. In particular:
More thresholds set to be above the capital adequacy ratio
included the capital conservation, countercyclical capital buffers and
surcharge for systemically important banks; changes were made to
the reserve requirement ratio for banks; measures taken to improve
risk management system of banks involved further requirements to
stress-testing and bank rehabilitation programs. Changes and
amendments were made to the Armenian laws on "Insurance and
Insurance Activities”, on “Payment and Settlement Systems and
Payment and Settlement Organizations”, on “Pawnshops and
Pawnshop Activities", on "Currency Regulation and Currency Control".
The capital adequacy ratio of insurance companies was aligned with
the requirements under Solvency 2.
These changes have been made with the aim to:
Contribute to maintaining the stability of the banking
system and its ability to withstand shocks in various
economic situations, increase the efficiency of the use of
macroprudential instruments by the Central Bank, and align
the capital requirement to international standards.
Provide preconditions for the creation of foreign currency
liquidity buffers.
ANNUAL
REPORT 2019
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