SUMMARY INVESTMENTS OF ARMENIAN COMMERCIAL BANKS IN GOVERNMENT BONDS DOWN ALMOST 16% TO $175 MILLION OVER 1Q OF 2009
ArmInfo
2009-05-23 12:50:00
ArmInfo. Summary investments of Armenian commercial banks in government
bonds were down 15.9% to 64.4 billion drams ($175 million) over 1Q
of 2009.
As compared to March 31 2008, this indicator was down 33.6%. The
share of investments of commercial banks in government bonds in total
assets made up 5.6% on March 31 2009 versus 11.8% a year ago. Experts
say investments in government bonds have suffered decline due to the
crisis phenomena caused by the global financial crisis that makes banks
to sale the trading book of government bonds to maintain crediting
growth rates. Experts say it is connected with the small number
of the banks involved in the international programs. As a result,
external financing for them is insufficient to provide loans. Many
of local banks have no external financing at all.
Analysis and the Ranking of the Armenian Banking System prepared by
the Agency of Rating Marketing Information (ArmInfo), ArmSwissbank
is the leader by 9.9 billion drams investment in government bonds
($26.9 million), HSBC Bank Armenia is in the second position by 9.3
billion drams ($25.4 million).
Unibank goes the third by 7.8 billion drams ($21.1 million), Converse
Bank is the 4th by 5.7 billion drams ($15.4 million) and VTB-Armenia
is the 5th by 4.1 billion drams ($11.3 million). The share of three
banks in total investments by commercial banks in government bonds
totaled 42% for 1Q of 2009: ArmSwissbank (15.4%), HSBC Bank Armenia
(14.5%) and Unibank (12.1%).
Seven banks ensured an annual growth of investments in government
bonds.
Artsakhbank ensured the largest growth of 42%. Seven banks ensured
the growth of investments in government bonds over 1Q of 2009. The
largest growth was registered at Anelik Bank – 6 times. This indicator
of another 14 banks suffered annual and quarterly decline.