Yerevan, June 26 /Mediamax/. In 2006, high speeds of development of the Armenian banking system were secured as to all the basic indices.

Mediamax reports that the Chairman of the Union of Banks of Armenia (UBA) Stepan Gishian said this, speaking on June 25 during the annual session of UBA.

He noted that all the banks of Armenia concluded the year of 2006 with profit. The aggregate profit of the country’s commercial banks for 2006 made 17.1bln drams.

By the end of 2006, the assets of commercial banks of the country made 544,2bln drams (growth - 20%). The volume of credit investments stood at 254,5bln drams (growth - 21,23%).

The general liabilities of the banks made 424,1bln drams (growth - 18,35%). The volume of deposits, attracted from individuals and legal entities, exceeded 150bln drams.

Stepan Gishian stressed that the speeds of growth of the Armenian banking system twice exceeds the general speeds of economic development. If the economic growth makes 10-12%, the given index in the banking system makes 20-24%.

According to Gishian, as a result of the growing competition, the banks implement new technologies and financial products, extending the variety of banking services, the interest rates of credits decrease.

The expected arrival of the new banks to Armenia, according to Gishian, will strengthen the competition even more, and the task of UBA is to secure conditions for healthy competition and observance of the ethical norms.

Stepan Gishian noted that the commercial banks take up purposeful steps to implement new systems of risk management and one may expect that already in the nearest 2-3 years the banking system of Armenia will not yield to a number of European banks as to its reliability and efficiency.

According to the assessment of the Chan man of the UBA Board, the banking system of the country is one of the most developed branches of Armenian economy. However, the index of correlation of credit investments to the GDP in Armenia is one of the lowest in the world. The level of bankization of economy is also low, and the UBA welcomes the efforts of the banks, directed to opening new branches in remote regions of the country.

According to Gishian, for the development of the banking system, the financial potential of Armenian Diaspora should be used, in connection with which, the necessity of elaborating special programs arises.

“The UBA is for the integration of the Armenian banking system into the international banking system and its correspondence to the international standards. In the course of the latest few years, the banking system of Armenia started surpassing the banking systems of many CIS states as to various quality indices and it does not yield to a number of developed countries of the world”, Stepan Gishian stressed.