Compliance Risk Assessment Framework in Armenia Needs Refinement, Report Finds

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A detailed assessment of observance has been conducted against the standard issued by the Basel Committee on Banking Supervision in 2012. The report highlights significant progress made by the Central Bank of Armenia in its approach to banking supervision with the adoption of a risk-based program (RBS) framework and addressing gaps in the regulatory framework identified in the 2012 Basel Core Principles assessment.

Progress Made

• Improvements have been made in the regulatory regime regarding requirements for:
  • Risk management
  • Stress testing
  • Corporate governance
  • Country risk
  • Consolidated supervision

However, the supervisory regime has recently transitioned from a rules-based to an RBS, and there is a need for continued refinement of the program for more granular assessments of firms’ capital needs.

Need for Refinement

• 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
  • Risk management capabilities across banking firms

Report Overview

The report provides an overview of the compliance risk assessment framework in Armenia, highlighting both strengths and weaknesses in the country’s approach to bank risk management and supervision.

Availability

The findings of this report are part of a series of country reports published by [insert organization name], providing insights into financial regulation and supervision around the world. The report is available as a free download and can be viewed using the Adobe Acrobat Reader software.