Yerevan /Mediamax/. Armenia’s Financial Sector Deepening Program (FSDP) of U.S. Agency for International Development presented the results of the research on “Corporate Management in Armenian Banks” in Yerevan today.

Mediamax reports that the research is based on surveys, realized among 15 Armenian banks and experts, who represent the interested organizations and establishments. The main goal of the research was to reveal the level of conformity of the corporate management system of Armenian banks with commonly accepted standards.

The corporate management principles of the Basel Committee and the Organization for Economic Cooperation and Development (OECD) were taken as a comparison basis.

As FSDP expert Narine Melikyan stated, over 50% of the polled stated compliance of the local legislation with the main principles of corporate management, fixed by the Basel Committee and OECD.

At the same time, Armenian banks noted the necessity to improve the practice of corporate management, in particular, to increase awareness, implement training programs, as well as approve a code of corporate management.

The majority of the polled banks (87%) noted that the improvement of corporate management system will be targeted to increase the level of risks management, 80% - to increase the authority of the bank and improve the system of internal control, 73% - to increase the efficiency of contact among shareholders, the Board and the Board of Directors of the bank, 53% - to increase investment attractiveness. Only 33% of the polled noted that the measures will influence the growth of capitalization and only 13% - the growth of the bank’s profitability.