Former chairman of the Central Bank of Armenia (CBA) Bagrat Asatryan said that currently Armenia’s banking system does not play the role of economy’s catalyst.

“Currently, the role of banks in Armenia’s economy is insignificant. They should push forward the country’s economy, while banks have found their modest niche and provide loans at high rates. However, it is the fault of the system, in which they operate,” said Asatryan.

The monetary base in circulation amounted to AMD 272bln by the end of the first nine months of 2010, while the money supply, common capital of Armenia’s banks and total assets totaled AMD 810bln, AMD 350bln (USD 800mln) and AMD 1.4 trillion (USD 4bln) respectively during the same period.

Nevertheless, Bagrat Asatryan noted that the pace of growth of Armenia’s banking system has considerably exceeded that of economy since the banking system’s establishment 15 years ago.

According to him, Armenia’s banks can provide the entire spectrum of services that are typical for an average international bank and are notable for their high professionalism.