Consolidation will shortly become inevitable for Armenian banks, Russian businessman of Armenian origin, member of the Board of Directors of Ameriabank Ruben Vardanyan said on Thursday, when asked what an impact the anti-Russian sanctions will have on Armenian banks.
He said that 21 banks is too much for a small country like Armenia. "In order to be efficient, Armenian banks should consolidate," Vardanyan said.
Concerning bank rates, he said that Armenia is dependent on processes developing in the post-Soviet republics. "On the other hand, we can get money not only from Russia but from international organizations. So, in case of a wise fiscal policy, we have good chances to keep our rates unchanged," Vardanyan said.
He noted that Russia is the biggest sales and labor market for Armenia, so, all that happens in Armenia has indirect effect on Armenia.
According to ArmInfo's Rating of Armenian Banks, as of July 1 2014 there were 21 banks in Armenia. Their aggregate capital was $1.2bln, assets $7.2bln, loans $4.8bln, obligations $6bln. In Jan-June 2014 the banks registered an aggregate net profit of $43.8mln.