Yerevan /Mediamax/. Today, the State Commission for the Protection of Economic Competition (SCPEC) of Armenia warned## “ACBA-Credit Agricole Bank”, “Areximbank”, “Byblos Bank Armenia”, “Cascade Bank”, “Armeconombank”, “Prometey Bank”, “Ardshininvestbank” and “Artsakhbank” against anti-competition agreements.

Mediamax reports that based on the address of the Armenian Central Bank (CB) chairman on 28 March 2008, the Commission launched administrative proceedings against possible anti-competition agreements in the Armenian banking system. According to the CB chairman’s address, during the issuance of mortgage and car loans the banks offered the clients insurance and property assessment services of definite organizations which limited the choice of the borrowers.

The analysis proved that the clients of “ACBA-Credit Agricole Bank”, “Areximbank” and “Byblos Bank Armenia” used insurance services of only “Ingo-Armenia” company. The clients of “Cascade Bank” applied only to “Cascade Insurance”; those of “Armeconombank” to “Sil Insurance”, of “Prometey Bank” to “Nairi Insurance”, and the clients of “Ardshininvestbank” and “Artsakhbank” – to “Rasco”.

“Armeconombank” is the co-founder of “Sil Insurance”, and the “Cascade Capital Holding” is the insurance company of “Cascade Insurance”.

During the analysis the State Commission for the Protection of Economic Competition concluded that the above mentioned banks “came to horizontal agreements” through indirectly coordinated actions and gave advantage to definite companies. The SCPEC instructed the banks to prevent such infringements in the future as well as offered the Central Bank to take measures to regulate the legal relations in this sphere.

The chairman of the Union of Banks (UBA) of Armenia and the chairman of the Board of “Prometey Bank”, Emil Soghomonian, said that the Commission should abstain from the warning, as after the CB chairman’s appeal to the SCPEC legal changes have been made, as a result of which the problem has been resolved by 90%. However, SCPEC chairman Ashot Shahnazarian noted that the Central Bank did not appeal to the Commission to stop the proceedings.