Licensing Stages for Banks and Foreign Bank Branches in Armenia
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In a significant move to streamline the process of setting up banks and foreign bank branches in Armenia, the Central Bank has outlined a clear licensing process that consists of several stages. The process begins with submitting a mediation letter and ends with either issuing a license or denial.
Stage 1: Prior Approval
The first stage involves submitting necessary documents for prior approval to the Central Bank. These documents include:
- A mediation letter from the initiative group or foreign bank
- Draft charter of the bank or branch of a foreign bank
- Economic program of actions, including:
- Organizational chart
- Income and expenditure estimates
- Long-term financial development trends
- Market projections
- Resource attraction methods
- Competition techniques
- Management principles
- Risk assessment
The Central Bank has one month to scrutinize the documents. If it finds any discrepancies or issues with the submitted documents, it may reject the mediation.
Stage 2: Registration
Once prior approval is obtained, the bank or foreign bank branch must submit additional documents for registration to the Central Bank. These include:
- Application on registration
- Resolution of the general assembly or authorized body on adopting the charter and election/appointment of bank governors
- Information on previous work experience of governors
- Charter of the bank or branch
- List of governors with authorized signatures
- Declaration from persons with sufficient equity interests in the statutory fund
The Central Bank has one month to review these documents. If it finds any issues, it may reject the registration.
Stage 3: License Issuance
After successful registration, the bank or foreign bank branch is issued a license by the Central Bank. This stage marks the end of the licensing process and allows the bank or branch to operate in Armenia.
Important Note: The decision on prior approval and registration are not subject to appeal.
By understanding these stages, banks and foreign bank branches can navigate the licensing process more efficiently and effectively, paving the way for a smoother establishment and operation in Armenia.