Yerevan /Mediamax/. The decision of the State Commission for the Protection of Economic Competition (SCPEC), which has issued warning against some Armenian banks, will be disputed## in court, the chairman of Board of “Prometey Bank” and the head of the Union of Banks of Armenia (UBA), Emil Soghomonian, said in the interview with Mediamax today.

On September 3, the State Commission for the Protection of Economic Competition issued warning to “ACBA-Credit Agricole Bank”, “Areximbank”, “Byblos Bank Armenia”, “Cascade Bank”, “Armeconombank”, “Prometey Bank”, “Ardshininvestbank” and “Artsakhbank” against anti-competition agreements. According to SCPEC, during the issuance of mortgage and car loans the banks offered the clients insurance and property assessment services of specific organizations which limited the choice of the borrowers.

“We do not accept commission’s decision as it violates the right of the banks to manage their own risks. The Central Bank of Armenia has issued a license to dozens of insurance companies. Some of them cannot reinsure the risks for even one bank. How can the bank run such a risk and rely upon such insurers?” Emil Soghomonian said.

According to him, if the Armenian banks agree to work with all insurance companies, the banking system of the country will lose stability and come under the threat of huge collapse. The banks should have the right to assess their own risks,” Emil Soghomonian told Mediamax

“At the Commission’s session it was noted that the situation has improved by 90% during a year, and today, the banks that have received the warning, cooperate with three, four, five sometimes even with more insurance companies. “Prometey Bank”, particularly, cooperates with four insurance companies,” UBA head stated. According to him, it would be more expedient that the Commission issues warning to those three banks which collaborate only with one insurance company founded by the bank itself.

In reply to Mediamax’s question about how the SCPEC warning will influence Armenia’s banking system, UBA chairman said: “There is no doubt that it will have a negative affect as we cooperate with a lot of international structures which are very sensitive about such cases.”