CENTRAL BANK OF ARMENIA WORKED HARD TO IMPROVE BANKING SUPERVISION SYSTEM LAST YEAR
ARKA
June 23, 2008
YEREVAN, June 23. /ARKA/. Armenian Central Bank has done a great deal
of job modernizing and improving banking monitoring and supervision
mechanisms, RA Central Bank Chairman Artur Javadyan has stated.
"The new functional supervision system clearly distinguishes between
the preventive functions and supervision for the sake of a fair market
and protection of consumers’ rights," Javadyan stated at the annual
session of the Union of Banks of Armenia held in the town of Dilijan
this year.
Javadyan said the approved Law "On Securities" implies maximum flexible
and effective regulation of the securities market due to which the
commercial banks and credit institutions may now provide investment
services on the securities market without acquiring any additional
license for it.
"The new law is especially beneficial for the commercial banks
specifically given the entrance of the Scandinavian Nazdak-OMX stock
market operator to Armenian financial market. Since January 1, 2008,
when it acquired ownership of Armenian stock exchange and Central
Depositary of Armenia, the Scandinavian company jointly with the
Central Bank of Armenia has been implementing a comprehensive program
of securities market development," Javadyan said.
According to the Central Bank Chairman, an essential legal measure
for Armenian financial market was the passage of a package of
laws regulating the processes of placing mortgage securities and
securitization of assets.
"The banks and other financial organizations will use this law to
solve the problem of "long-term money", provide mortgage loans on
longer terms and lower interest rates," he explained.
Besides, the Law "On Turnover of Loan Information and On Activities of
Credit Bureaus" was worked out and approved by the government which
is sure to provide good potential for the effective development of
Armenian financial market.
"This will raise the level of financial mediation, the volumes of
available loans, introduction and development of a scoring system,
as well as it will provide mechanisms for assessing loan risks and
protection of consumers’ rights," he said.
Javadyan also singled out the efforts for introducing a concept
of relieving the banking system supervision, due to which the legal
underpinnings underwent a number of changes, lower standards of current
and overall liquidity were established, and the currency position
standard was removed from the economic standards of the banks. -0–
From: Emil Lazarian | Ararat NewsPress
