The Head of the Central Bank of Armenia, Martin Galstyan, announced the implementation of an international approach to forming a neutral capital buffer in the country. Its essence is to accumulate financial reserves in advance, before systemic risks in the economy begin to grow.
According to the regulator, thanks to counter-cyclical policy, the banking system has already formed a significant safety margin.
The volume of buffer capital exceeded 180 billion drams, and liquid assets reached about 2 trillion drams in national currency and another 790 billion in foreign currency. At the same time, the share of non-performing loans decreased to historically low levels.
Strengthening stability allowed for expanded lending: the ratio of bank loans and assets to GDP reached 64% and 102% respectively by the end of 2025.
Overall, the financial system of Armenia shows growth amidst an increase in GDP to 11.32 trillion drams and increased activity in the banking sector.
