IMF Staff Country Reports

Republic of Armenia : Detailed Assessment of Observance of the Basel Core Principles for Effective Banking Supervision

Author/Editor:

International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

February 5, 2019

Electronic Access:

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Summary:

This detailed assessment of observance was conducted against the standard issued by the Basel Committee on Banking Supervision in 2012. The report also highlights the Central Bank of Armenia’s significant progress in its approach to banking supervision, with adoption of the risk-based program framework and addressing gaps in the regulatory framework identified in the 2012 Basel Core Principles assessment. The regulatory regime has been improved regarding requirements for risk management, stress testing, corporate governance, country risk, and consolidated supervision. Although the supervisory regime has recently moved from a rules-based to a risk-based program, continued refinement of the program is needed for more granular assessments of firms’ capital needs. The process for conducting risk assessments of each firm has identified a need for building a stronger and more structured (system-wide) understanding of the level and magnitude of risk and risk management capabilities across banking firms.

Series:

Country Report No. 19/42

Subject:

Armenia Bank credit Central Banks Financial crises Financial institutions Financial services Middle East