Annual Report 2019
34
CENTRAL BANK OF ARMENIA
The banking sector remains the largest participant of the
financial system; it accounts for 83.5% of the system's assets (see
Figure 2). The share of other participants of the system (credit
organizations, insurance companies, investment firms, etc.) is small
and the impact of their activity on the stability of the financial system
is not significant yet.
Figure 2:
Assets of the financial system
31.12.2018
31.12.2019
85.1% Banks
■9.5% Credit organizations
■ 0.9%
■ 0.9%
Insurance companies
Investment firms
Net assets of mandatory pension funds
2.7%
■ 0.9%
Other financial institutions
83.5% Banks
10.1% Credit organizations
Insurance companies
■ 1.0%
■ 0.9%
■3.6%
0.9%
Investment firms
Net assets of mandatory pension funds
Other financial institutions
In 2019, the assets of the banking system increased by 16.9%,
loans to the economy, by 16.4%, total capital, by 10.0%, and
liabilities, by 18.1%. The growth rates of mortgage loans and
consumer loans proved faster in total loan portfolio (40.6% and
30.6%, respectively), and the Central Bank worked on designing and
introducing some macroprudential tools, as a result. These tools
include the loan to value ratio as well as the client debt to income ratio.
According to supervision reports submitted to the Central Bank, the
banking system operated with profit. The return on assets and return
on equity ratios amounted to 1.2% and 7.9%, respectively (0.8%
and 5.3% in 2018).
ANNUAL REPORT 2019View entire presentation