ARMSWISSBANK GOT LICENSE FOR BROKER-DEALER AND DEPOSIT ACTIVITY

ArmInfo
2007-05-31 14:02:00

The head of Armenian Central Bank took decision to give license
to CJSC "Armswissbank" for the broker-dealer and deposit activity,
ArmInfo was informed from press-service of Armenian Central Bank.

Executive director of the bank Gevorg Machanyan told Arminfo
correspondent that this decision became possible thanks to certain
changes in the bank legislation which open way for activation of
commerce banks for giving the broker-dealer services and underwriting
at the paper market. He also added that Armswissbank is the only
bank of the country which refused to give services to wide layers
of population as it goes the way of the investment, corporative and
private banking. , – Machanyan said.

He also added that over two years of its activity Armswissbank created
strong investment-technological and staff base so that to occupy niche
of the highly professional financial consultant. At the same time,
as he said, it is still early to wait for Initial Public Offers (IPO)
for not enough level of transparency of companies, their corporative
management and not enough development of their managing and controlling
procedures. He thinks that enough number of the debt securities of
corporative emitters will appear at the paper market, and their issue
should be observed as a pre-condition for stock market formation. At
the same time, as Machanyan said, the law field for investing and
banking in Armenia has not been formed enough as there is uncertainty
of legislation especially in the sphere taxing of investors’ benefits.

To note, today Armswissbank is going to introduce debt securities of
the two big Armenian companies. The bank was the first that made REPO
deals on the corporative obligations at the Armenian market.