Yerevan/Mediamax/. In 2010, the profit of the Armenian banking system made about 30bln AMD, and the growth of assets, capital and the aggregate credit portfolio of the banking system made 17%, 14% and 25% respectively.

Mediamax reports that CB Chairman Artur Javadyan said this at the traditional pre-New Year reception at the Central Bank.

According to him, the correlation of the banking system’s assets to GDP of Armenia today makes 46%, which exceeds the analogous index of last year by 4.1, and the analogous index of 2008, by 18 percentage points.

“Growth in financial mediation was also contributed to by the net inflow of foreign institutional investors at the volume of 80bln AMD, which, along with internal resources of banks, were directed to the credit market, thus stimulating market competition and contributing to reduction of rates. One should note that today already individual banks offer credits at the annual interest rate of 9-10% for transparent and promising companies”, Artur Javadyan stated.

He noted that in the coming years, issues of expanding financial mediation and reducing interest rates will be solved easier, since growth of the insurance market and establishment of private pension system provide for appearance of “long money”, which will contribute to long-term financing of entrepreneurship activity and reduction of prices.