Central Bank Issues New Regulations on Banking Activities

Overview

The Central Bank of Armenia has announced new regulations governing banking activities in the country. These regulations aim to ensure a safe and efficient banking system, while also promoting transparency and accountability.

Requirements for Registration and Licensing

To conduct business in Armenia, banks and branches of foreign banks must submit certain documents to the Central Bank:

• Mediation of the founding bank
• Basis for opening a representative office
• Charter of the founding bank

Once submitted, the Central Bank will register the branch or representative office and issue a registration certificate within one month. If the application is rejected, the Central Bank must notify the bank within ten days.

Additionally, banks and branches of foreign banks must apply for a license from the Central Bank to operate in Armenia. To obtain this license, applicants must meet certain conditions, including:

• Completing the minimum statutory fund
• Having adequate space and equipment
• Establishing an organizational structure and operations systems
• Meeting standards for governors of the bank or branch

Fees for Registration, Licensing, and Services

The Central Bank has established fees for registration, licensing, and other services. Banks and branches of foreign banks must pay these fees in accordance with the law “On State Duties”.

Log of Registered Banks and Branches

The Central Bank is required to maintain a log of registered banks, branches of domestic and foreign banks, and representative offices of domestic and foreign banks. The log will include information such as:

• Registration number
• Date of registration
• Legal status
• Corporate name
• Address
• List of founders (shareholders, participants)
• Magnitude of the statutory fund
• Address and corporate name of subsidiary bank or department

Notification of Changes

Banks and branches of foreign banks must notify the Central Bank of any changes to their charter, list of governors, location, or magnitude of the statutory fund.

Banking Activities in Armenia

According to Article 34 of the new regulations, banks registered in Armenia, their branches, and branches of foreign banks may engage in various financial transactions, including:

• Taking deposits
• Providing loans
• Issuing guarantees
• Opening accounts
• Investing in securities

However, banks are prohibited from performing manufacturing, trading, or insurance operations unless otherwise permitted by law.

Access to Full Text of Regulations

The full text of the new regulations can be found on the Central Bank’s website.