Five Foreign Banks Express Wish to Start Business in Armenia

YEREVAN, June 15. /ARKA/. Five foreign banks expressed wish in 2007 to start a business in Armenia, Tigran Sargsyan, chairman of the Central Bank of Armenia said Friday.

He told journalists that five foreign banks from Germany, Austria, Netherlands, Lebanon and Russia applied to the CBA for entering Armenian banking area.

Sargsyan called these banks experienced financial organizations having professional traditions.

"Their appearance in Armenian banking sector will considerably intensify competition", he said.

The CBA head also said that only those banks whose management enables them to deepen the knowledge they possess and obtain new will be able to survive amid growing competition.

The Central Bank's figures show that Armenian banking system's actual authorized capital has grown 32.9% or by AMD 19809.7mln over 2006 toAMD 80107.6mln.

Non-residents' participation in Armenian banks' capital grew 16% and reached AMD 35670.2mln by late 2006. Their participation made 44.52% of the Armenian banks' aggregate authorized capital.

According to the information, Armenian banking system's aggregate authorized capital reached AMD 82907.5mln by late March 2007 and non-residents' participation in Armenian banks' capital has risen 8.3% (by AMD 2956mln) over a period between January and March 2007 to AMD 38626.2mln.

Non-residents' quota in Armenian banking system's capital made 46.59% by late March 2007 against 44.53% earlier this year.

21 banks function in Armenia now. ($1 - AMD 347.73).