Purpose
Mission of the Central Bank
* to be a prestigious, transparent, independent, knowledge-based and effective entity that understands and appreciates development trends in international financial community * to maintain institutional capacities in order to promptly respond to changes in economic landscape and effectively influence economic processes * to always support a sustainable macroeconomic development of Armenia while remaining a key partner to the Government in facing economic challenges.Key tasks of the Central Bank
* to maintain stability of the financial sector * to provide issuance of national currency and ensure cycle of it * to combat money laundering andStructure
CBA Management
The Central Bank Board is the highest body of the management of the Central Bank. The Central Bank Board consists of the chairman, his two deputies and 5 members of board. Chairman of the Central Bank and Deputy Chairmen of the Central Bank are included in the Central Bank Board according to position. The Chairman of the Central Bank is the highest official of the Central Bank. The Chairman is responsible for the fulfillment of the objectives set by this law. In the absence of the Chairman or if he is incapable to perform his duties, he is substituted by one of his deputies, and in case of absence, or impossibility to govern by the deputies, the eldest member of the Central Bank Board shall act in his place. The Chairman is appointed by the National Assembly, at the presentation by the President, for a period of 6 years, and The Deputy Chairmen are appointed by the President, for a period of 6 years. The Central Bank Board members are appointed by the President of Armenia for a period of 5 years. Members of the Central Bank Board cannot hold any other paid position in the Central Bank. The Chairman of the Central Bank coordinates and ensures the work of the Central Bank, represents the Central Bank in the Republic and abroad, as well as in the international organizations, implements other rights assigned exclusively to the Central Bank Board. The Chairman, his deputies as well as Board Members cannot be members in management of any party, may not hold another state title, or perform other payable work, except for the scientific research, pedagogical and creative activities.Maintaining financial stability
Main body responsible for financial stability in Armenia is the Central Bank, as provided for by the Republic of Armenia Law “On Central Bank”. One of the CBA's objectives is maintaining the stability and appropriate functioning of the financial system of Armenia, including providing the stability, liquidity, solvency and appropriate functioning of the banking system. Central Bank of Armenia implements the above-mentioned task through its efforts of risk assessment and risk reduction, financial system regulation and supervision functions, payment system oversight and, in exceptional circumstances, by acting as lender of last resort, and resolution work to deal with distressed banks.Introduction to financial stability
The Central Bank of Armenia defines financial stability as a condition where financial system is able to withstand shocks and disruptions so that the system maintains a sufficient level of liquidity, adequately performs transactions and transmissions and facilitates allocation of savings to investment opportunities in the economy. In its most common definition, financial stability means the stability of key financial institutions and financial markets, and does not in any way rule out bankruptcy on the part of individual financial institution as well as severe fluctuations in asset values. Financial stability implies identification of sources of major risks, imprudent financial risk management, not efficient pricing of assets and implementation of appropriate policies. A stable financial system is a key ingredient for a healthy and successful economy. Everyone needs to have confidence that the system is safe and stable, and functions are proper to provide vital services to the economy. Safeguarding and maintaining the stability of financial system is of primary importance to central banks of most countries. This is because low inflation and unemployment and fast economic growth, as common objectives of monetary and other state authorities, cannot be achieved in the modern economy without a developed and stable financial system through which the effects of monetary policy measures can be effectively channeled to other economic sectors.Instruments used by Central Bank to maintain financial stability
The Central Bank has a variety of instruments for maintaining financial stability. Such instruments are: * risks analyses and assessment * market intelligence, that is creating widespread transparency with regard to central bank's objectives, publicly identifying risks, encouraging financial market participants to increase their awareness of these risks to act accordingly * payment system oversight and development * market operations and liquidity assistance * acting as lender of last resort * financial Stability committee * other In order to identify probable risks affecting financial system, the Central Bank analyses a number of indicators of local and external financial system, as well as of the real sector, monitors financial markets, and oversights payment systems. At this stage, the Central Bank analyses financial system pillars (financial institutions, financial infrastructure and financial markets), as well as developments in macro economy. The Central Bank draws on analysis of all factors that might directly or indirectly affect stable functioning of the financial system. Another important tool to assess financial stability is indicators oCentral Bank policies addressed to maintaining financial stability
Central Bank policies to maintain financial stability fall into three types. * When the financial system is characterized as stable, or in other words the fluctuations of main indicators are within allowable band, a preventive policy will need to be implemented. Implementation of such a policy implies monitoring a number of macro-prudential indicators on an ongoing basis. It is necessary to capture the financial sector's direct and indirect international exposures in both quantitative and qualitative terms. Preventive policy is addressed to financial stability by using available supervisory and regulatory tools. * When financial system fluctuations are within the target band yet tend to infringe it, which might cause high volatilities in certain financial or non-financial sectors, then corrective policy will be applied. Actions arising out of the above policy cover activities such as examining new financial market instruments and risk analysis methods, studying loan loss provisioning practices, discussing new capital adequacy requirements and adopting international reforms and implementing appropriate supplements. This in fact provides for an opportunity to extend available instruments and improve regulatory framework. * In case the fluctuations of financial system are beyond the level allowed and the system is not able to perform its key functions, a recovering policy will be implemented. Recovering measures commonly include an extended variety of anti-crisis measures. Extraordinary anti-crisis measures taken by the Central Bank are: extended opportunities for banks to borrow from the central bank, policy of quantitative easing, emergency liquidity assistance under its function of lender of last resort, etc.Financial Stability Committee
In 2011 the Central Bank established a consultative body that is the Financial Stability Committee. The main task of the Committee is assessment of financial stability. The Committee identifies probable risks that threaten the financial stability and the main channels of its influence, debates the main measures addressed to the providing of financial stability, suggests the scope of further policy directions and other necessary actions. The committee sessions take place every quarter. In extraordinary situations a special session is convened on the basis of chairman's verbal decision. * The Committee is available with the structure as mentioned below: * Committee chairman * Chairman of Central bank * Committee deputy chairman * Deputy Chairman of Central Bank * Committee members * Head of Financial system stability and development department * Head of Monetary policy department * Head of Financial Supervisory department * Head of Financial department * Head of Financial system regulation departmentFinancial Stability Report
The Central Bank or Armenia publishes the results of ongoing analyses in the Financial Stability Report. Financial stability report is published on an annual basis starting from 2007 and on a semiannual basis, starting from 2010. Main goal of the Financial Stability Report is to focus on current developments in real and financial sectors that could undermine the financial stability. The report presents the Central Bank's assessment of financial stability, main risks threatening the financial stability and measures underway to prevent and reduce these risks. The publication of Financial Stability Report allows improving awareness of financial institutions, companies, entrepreneurs and general public concerning measures taken by authorities to ensure financial system stability. On the other hand, the purpose of providing information on risk origins and vulnerability of financial stability is to help people for taking decisions in various situations. The risks affecting financial stability of Armenia can emerge in local economy, foreign economy and it financial system itself. Taking into account the aforementioned, the possible risks affecting financial stability of Armenia are presented in 5 areas: * Risks derived from the developments of world economy (macro economy and financial markets) * Risks derived from the developments of Armenian macroeconomic environment * Risks derived from the developments of Armenian macroeconomic environment * Risks derived from the developments of financial institutions of Armenia * Risks derived from the developments of financial infrastructures. The Central Bank of Armenia continuously carries out extensive work in order to make financial stability report more informative and extended in accordance with international practice and in face of new challenges.Strategy for Maintaining Financial Stability, 2015–2017
Maintaining a sound, stable and functional financial system
This aspect is aimed at providing the normal activity and stability of the financial system of Armenia, including the creation of necessary conditions for normal operation. This implies that financial institutions and payment and settlement system organizations, fulfill their obligations in time, perform their functions effectively, efficiently and uninterruptedly, manage their risks prudently, absorb and neutralize the risks arising from probable shock situations, while maintaining their activities open and transparent.= 1. Current achievements
= The list of achievements included making a comprehensive analysis of the risks of financial institutions and introducing tools for financial stability monitoring. The financial stability report publication has improved. There were simulation games organized for working out response and other relevant action to emergency situations. A system was introduced to assess risks spilling over to the financial system from external and real sectors, through macro-prudential analyses (quantitative methods, stress tests). The crises management concept and systemic bank disclosure methodology were developed and are currently in use. A concept of introducing the new Basel Principles (Basel 3) was developed in order to align the regulatory framework of the Armenian banking system with internationally accepted principles. Work to implement a new model (risk-based supervision) is underway. The joint World Bank and International Monetary Fund team also conducted an assessment of the financial system of Armenia under the Financial Sector Assessment Program in 2012, which marked notable improvements and progress in the field of regulation and supervision of the financial system compared to the 2005 assessment. In particular, the latest assessment indicates that the financial system of Armenia meets the abovementioned principles by nearly 93% which means the country fits the ranking as compliant or largely compliant. A timetable of implementation of the framework Solvency 2 in the Republic of Armenia was developed and approved. The relevant works for the organization of the timetable indicated events have begun; most particularly the “Non-Life Underwriting Risk Assessment Manual” has been developed and is currently on a pilot stage. In 2012, the total evaluation of Electronic Payment System of the Central Bank in accordance with international principles, set by the Bank for International Settlements, was completed. Based on the results of the evaluation, the EPS has been estimated to be reliable and risk-free in the financial stability aspect. These evaluation results also served a basis for the World Bank activities conducted under FSAP in 2012.= 2. Main development goals
= * Develop a financial stability framework to ensure effective systems and procedures are in place for evaluation of potential risks that pose threat to financial stability, and for crisis management. * Establish a sustainable framework of regulation and supervision in line with best international experience and principles that would be the best combination of financial system risks management (ensuring stability) and current developments. * Implement reforms under a single financial system development philosophy to ensure tantamount and balanced development of financial institutions, financial markets and financial infrastructures concomitant with increasing financial intermediation. * Continue actions toward introduction of advanced bank regulation and supervision standards, specifically new Basel principles, risk-based forwardlooking supervision, consolidated supervision of financial institutions, improve the reporting system and the quality of data reported by banks, and adopt more streamlined approaches to the supervision on the whole. 16 * Continue activities towards introduction of best international standards on insurance regulation and supervision, namely the new principles developed by the International Association of Insurance Supervisors, improve the current supervision approaches, and in particular continue further efforts towards the phase by phase introduction of the Solvency 2 framework. * Evaluate the “Unified System of Securities Registries Maintenance and Settlement” of the= 3. Expected outcome and policy action
=Monetary policy
The Central Bank of Armenia (the CBA) is a legal entity empowered with state functions. The primary goal of the CBA is price stability, pursuant to thForeign exchange policy
The foreign exchange policy of the Central Bank is aimed at enhancing the reliability and international credibility of the Armenian Dram and creating a legal and economic framework for current account operations, flows of the Capital Account and foreign investments, through an effective management of currency reserves of the Republic of Armenia. To this end, an appropriate exchange rate regime has been adopted, principles of the foreign currency operations framework have been developed and a scope of legislative background has been set. ''Exchange Rate Regime'' The Central Bank is conducting a freely floating exchange rate regime which is consistent with the principles of liberalized capital account operations and implementation of an independent monetary policy. The Central Bank's intervention in theHistory
Pre-1918
The earliest coins found in Armenia date back to the 6th–5th centuries BC. These are exclusive samples of silver coins of Achaemenian Iran, Miletus of Asia Minor and Athens of Greece. It is known that even in the 4th century BC Achaemenian dynasty satraps of Armenia Tiribazus and Orantas struck coins portraying their images. Coins were widely used in Armenia from the beginning of Hellenistic age (second half of the 4th century BC). Owing to international trade silver coins of Alexander the Great (336–323 BC) appeared in Armenian market from Asia Minor and Mesopotamia. Armenian coins of that period normally depicted portrait of the monarch on the obverse and mythological symbols as well as name and title of the king on the reverse, in Greek inscriptions. Starting the second half of the 3rd century BC Armenian kings of Sophene, Arsham, Xerxes, Ardisares, among them, struck copper coins, which are the earliest Armenian coins on record. Somewhat more coins reached us from the period of Artaxiad kingdom (189 BC – 1 AD). Armenian coins appeared in international trade during the reign of Tigran the Great (95–55 BC). These were minted both in cities of Armenia (Artashat, Tigranakert) and Syria (Antioch, Damascus). There are not known coins of the Arsacid dynasty (66–428) on record. Initially, coins of the neighboring countries, Roman Empire and Parthian Kingdom, were in circulation in Armenia. Later on, coins of Sassanid dynasty and Byzantine Empire were put into circulation. After being conquered by Arabic Caliphate (second half of the 7th century) coins of Umayyads and, later on, of Abbasids were used in circulation. Of the money of Arabic Caliphate, silver dirham, copper fils and a limited number of gold dinar were in circulation in Armenia. At the end of the 10th-century silver dirham was replaced by the Byzantine gold coin which then took a lead role of money in the region at that time. In the meantime coins of Seljuk rulers began penetrating into circulation. There have not been coins struck during the reign of the Bagratid dynasty (885–1045), although the copper coin of the king Curicé II (1048–1100), a descendant of the Bagratid dynasty of Lori, is known to us. This is the first coin on record in Armenian inscriptions. At the end of the 11th century, the Armenian State of Cilicia (1080–1375) was established on the territory of Lesser Armenia and Sophene. The history of this state spanned two periods – Great Princedom and Kingdom. The coins of the period Princedom (1080–1198) are barely available in unit samples. There is relatively a greater variety of coins of the period of Kingdom (1198–1375) available. Of Cilician issuance one can distinguish coins in silver, billon (an alloy with a smaller amount of silver), copper and a very limited number in gold. Gold coins were called dahekan; silver coins – dram, tagvorin; and copper coins – dang, qartez, pogh. Armenian inscriptions and portrayal of the cross are the main characteristic features of the Cilician coins. During the reign of king Hetum the First (1226–1270) coins carrying bilingual appellations (Armenian and Arabic) were struck. Early in the 13th century, coins of Georgian kings, which were minted of copper in the main and silver in small number, penetrated into the circulation in the northern and eastern parts of Armenia. Coins of Mongolian khans appeared in circulation starting from the 1260s. These were basically silver dirhems and copper fils in small number. Later on, coins of different Moslem dynasties of Turkish origin were used in money circulation. Starting from the 16th-century coins of Iranian shahs dominated in circulation in Armenia. In the 17th century, one can observe a massive penetration of west-European thalers into circulation in Armenia. Until the early 19th century coins of Iranian shahs were circulating in eastern part and coins of Turkish sultans in western part of Armenia. A new era of money cycle arrived after annexation of Armenia to the Russian Empire (the 1st half of the 19th century). Money issues of the empire and, for the first time, paper notes were put into circulation. In the aftermath of the February overturn paper notes of the Russian Provisional Government began circulating in Armenia.Money cycle in 1918–1924
In the aftermath of the October overturn in 1917 Armenia, Georgia and Azerbaijan left the Russian Empire soon to create the Transcaucasian Commissariat, an independent constituency. In February 1918, the Transcaucasian Commissariat issued notes in nominal value 1, 3, 5, 10, 50, 100 and 250 rubles. For the first time, Armenian inscriptions appear on these notes and the numismatic intelligence takes them as the first Armenian paper notes. Achieving independence on May 28, 1918, the first Republic of Armenia put the checks, as issued by Yerevan branch of the State Bank, into circulation. In summer of 1920, banknotes of the 1919 series were introduced in nominal value 50, 100 and 250 rubles. These were designed by H. Kojoyan and A. Fetvajyan and printed by “Waterloo & Sons Limited” in London. This issue stands apart with its original design as it uses national patterns and ornaments full of creativity. In 1921, Yerevan branch of the State Bank issued checks in nominal value 10,000 rubles. Then banknotes of the 1921 series in nominal value 5,000 and 10,000 rubles came in. At some point later, banknotes of the 1922 series in nominal value 25,000, 100,000, 1 million and 5 million rubles as well as bills at par value of 5 million rubles were issued. In 1922 the three republics – Armenia, Georgia and Azerbaijan – united to constitute the Federative Union of Transcaucasian Soviet Socialist Republics. In 1923, the FUTSSR issued in banknotes in nominal value 1000, 5000, 10000, 25,000, 50,000, 100,000, 250,000, 500,000, 1 million, 5 million and 10 million rubles. On December 13, 1922, the FUTSSR was re-organized into the Transcaucasian Soviet Socialist Federative Republic and began issuing banknotes in nominal value 25, 50, 75, 100, 250 million and 1 and 10 billion rubles. The 10 billion rubles banknote was never put into circulation. The 1923 series bill at par value of 1 chervonets was neither put into circulation. Shortly thereafter, these banknotes were replaced although the authorities of Soviet Armenia had the December 20, 1920 decree stipulating that the circulation of banknotes of Soviet Russia was mandatory, too. After formation of the Soviet Union, a monetary reform was passed with an April 15, 1924 government decree issuing resolution on substitution of all types of banknotes in circulation in Transcaucasia for the banknotes of unified samples of the Soviet Union.Money cycle in the Soviet period
In 1924, coins were put into circulation in the territory of the Soviet Union. These were in nominal value 1, 2, 3 and 5 kopecks in copper; 10, 15, 20 kopecks in base-alloy silver; and 50 kopecks and 1 ruble in silver. Copper coins of the smallest nominal value of half kopeck were minted in 1925–1928. In 1923, the first Soviet gold coin (1 chervonets in nominal value) was minted. This conformed in all its features to the gold coin worth of 10 rubles of Russian Empire. It almost never appeared in circulation and was only used in foreign trade transactions. Starting from 1926, coins in nominal value 1, 2, 3 and 5 were made of bronze; starting from 1931, coins in nominal value 10, 15 and 20 kopecks were made of cupro-nickel alloy. There has been a great variety of the first Soviet banknotes. In circulation were the Soviet chervonets (10 rubles) and the rubles designed to portray the symbols of the Soviet ideology. The types of banknotes of this period were often replacing each other. A monetary reform was passed in 1947 with a key objective to promote to a quick recovery of the war-suffered economy, withdrawal of counterfeit money from circulation and replacement of the old samples with new ones. The monetary reform of 1961 was aimed to change the price scale (10:1), improve the money cycle and issue banknotes of new design. New series of coins in nominal value 1, 2, 3, 5, 10, 15, 20, 50 kopecks and 1 ruble were put into circulation. The series of banknotes consisted of 1, 3, 5, 10, 25, 50 and 100 rubles in nominal value. In 1991, to regulate the money cycle, banknotes in nominal value 50 and 100 rubles were withdrawn from circulation and substituted by new ones – banknotes of the 1991 series in nominal value 50 and 100 rubles (two different types). Later on, banknotes of the 1991 series in nominal value 1, 3, 5, 10, 200, 500 and 1000 rubles were put into circulation. Since February 1992, prices were liberalized, which led to the rise in prices and devaluation of the ruble. Banknotes of the 1992 series in nominal value 50, 200, 500, 1000, 5000 and 10000 rubles were put into circulation.Money cycle in the Republic of Armenia
On November 22, 1993, the local currency, the Dram, was put into circulation in nominal value 10, 25, 50, 100, 200 and 500 drams, using an exchange rate of 200 rubles for one Dram. Banknotes of the former Soviet Union, in nominal value 1–500 rubles of the 1961–1992 issue were allowed to co-circulate with the Dram up until March 17, 1994. Coins in nominal value 10, 20, 50 luma and 1, 3, 5, 10 drams of aluminum alloy were put into circulation since February 21, 1994. Banknotes in nominal value 1000 and 5000 drams were put into circulation since October 24, 1994 and September 6, 1995, respectively. Starting 1998, banknotes of the second series in nominal value 50, 100, 500, 1000, 5000 and 20000 drams were put into circulation. The banknotes of this series meet modern requirements in terms of security, endurance, quality and design. On June 4, 2001, the commemorative banknote in nominal value 50000 drams dedicated to the 1700th anniversary of adoption of Christianity in Armenia was put into circulation. In the period 2004–2005, the banknotes in nominal value 50 and 100 drams of the 1993–1995 series and the 1998 series were withdrawn from circulation. These have been ceased to be a legal tender in the Republic of Armenia yet are allowed to be exchanged at their par in commercial banks and the Central Bank of Armenia, without limitation. In the period 2003–2004, the coins of the second series in nominal value 10, 20, 50, 100, 200 and 500 drams were put into circulation. Since August 24, 2009, the banknote in nominal value 100000 drams was put into circulation. The banknote depicts the king Abgar the Fifth of Edessa. According to accounts of Armenian historians, Abgar was the first king of Armenian origin to have adopted Christianity. He has been venerated by the Armenian Apostolic Church. Since August 1994, Central Bank of Armenia has issued a few dozen of commemorative coins made of gold, silver and cupronickel.20th century up to 1991
At the start of the 20th century, concentration of capital was taking place in Armenia as capitalistic relations developed. The Russian capital was the dominant one. Major Russian banks were branching out in key towns of Transcaucasia. Branch offices of banks owned by merchants from Azov-Don, Volga-Kamsk, Tiflis and Caucasus, on the whole, opened up in Yerevan. The Public Town Bank opened up in Alexandrapol, Armenia. In 1914, there were 10 banking institutions functioning in Yerevan. Banks were involved in commercial and industrial activities through investing in shareholding companies, in addition to their lending operations. In the times of civil wars the financial and credit system, as well as money cycle, were disrupted; financial rights were just a formality, while no framework was in place to regularize the functioning of treasuries. In the aftermath of the October overturn in 1917 Armenia, the Transcaucasia Commissariat was established, which included Armenia, Georgia and Azerbaijan. Khachatur Karchikyan was appointed as the Minister of Finance of the Transcaucasia Commissariat. In May 1918, the Transcaucasia Commissariat was dissolved, and establishment of three independent republics followed thereafter. On May 28, 1918,Development of the CBA
''Introduction of the national currency:'' In 1993 the Republic of Armenia Law on “The Central Bank of the Republic of Armenia” was adopted, and the National Bank was renamed into the Central Bank of the Republic of Armenia. The national currency, the Dram, was put into circulation in the territory of the Republic of Armenia under Resolution No. 15 of 19.11.2003 of Supreme Council of the Republic of Armenia. ''Creation of monetary policy:'' In 1994 for the first time, the Central Bank formulated a monetary policy program in that way adopting the strategy to curb inflation. ''Adoption of banking legislation:'' In 1996 the National Assembly of the Republic of Armenia adopted the following laws in order to regularize the Armenian banking sector, as follows: Law on the Central Bank of the Republic of Armenia, Law on Banks and Banking, Law on Bank Bankruptcy, Law on Bank Secrecy. Maintaining price stability has become the number one priority for the Central Bank, and a new framework for banking system rehabilitation measures was established. ''Creation of national payments and settlements system:'' In the period 1996–2001 interbank electronic payments system BANKMAIL, government securities accounting and settlements system BOOKENTRY were introduced. The SWIFT system started to be widely used in international payments. In the meantime, efforts were spent to launch the national payments and settlements system in compliance with international standards by creating the unified payment and settlement system ArCa (‘Armenian Card’). ''Improvement in the banking legislation framework; creation of infrastructures:'' In the period 2002–2004 considerable improvements and innovations were made to the banking legislation, giving birth, among others, to the establishment of guarantee of deposits of individuals. Further, the Central Bank took on the function for combating money laundering and terrorism financing. The process of rehabilitation of the banking sector was completed and Armenian banks availed themselves of increased levels of replenishment of capital. ''Central Bank as mega regulator and responsible for financial stability:'' In 2006 a single framework for risk-based financial regulation and supervision was introduced in Armenia in compliance with international practice. The Central Bank was given authority to regulate and supervise activities of all participants of the financial sector. So, the Central Bank took on the function of megaregulator along with responsibility for maintaining financial stability. A corporate governance culture was introduced to the financial sector, the banking system in STAGES OF DEVELOPMENT OF THE CENTRAL BANK4 particular. Banks became increasingly service-friendly, in a sounder environment of competitiveness. ''Inflation targeting:'' In 2006 the Central Bank moved to a fully-fledged inflation targeting strategy. And since CBA's main and primary objective is to ensure price stability and considering the expectations that inflationary risks will persist in the external world, the annual inflation target band for 2008-2010 has been set at 4% (+1.5%). ''Development of financial sector; institutional and infrastructural reforms:'' In the period 2007–2011, the Central Bank initiated legislative reforms pertaining to the financial system operations. This set up a ground for reforms to implement in the non-bank financial sector, namely insurance and capital markets as well as paved a way to implement reforms in infrastructures. NASDAQ OMX, one of the best operators worldwide made its entry to the Armenian market. Further, a consumer interest protection component was established; the office of financial system mediator started its operations; a compulsory third party motor liability insurance scheme was introduced The banking sector is the biggest player of the Armenian financial market. The sector accounts for approximately 95 percent of assets of the financial system. ''As at December 31, 2014 the Armenian financial market comprised:'' * 21 commercial banks (with 509 branch offices) and one development bank (All-Armenian Bank) accounting for around 90 percent of financial sector assets. The banks' * Total capital amounted to AMD 469 billion * Total assets amounted to AMD 3 trillion 411 billion * Total liabilities amounted to AMD 2 trillion 942 billion * Paid-up statutory fund amounted to AMD 280.1 billion * Nonresident equity amounted to AMD 186.4 billion * 32 credit organizations (with 149 branch offices) * 8 insurance companies and 2 intermediaries (insurance brokerage firms) * 141 pawnshops * 203 exchange offices (including branch offices) * 7 money transferring companies * 4 payment instrument and payment and settlement document processing and clearing companies * Securities market participants that include 21 banks as investment service providers, 8 investment firms, 4 investment fund managers, the Armenian Central Depository, and NASDAQ OMX Armenia.Governors
Chairmen of the State Bank and the Central Bank *National currency
The national currency of the Republic of Armenia is dram (ISO code - AMD, the sign - ). One dram is equal to one hundred luma. The CBA is vested with the exclusive right to issue currency. The national currency was put into circulation on 22 November 1993. The design of the graphical symbol (sign) of the Dram of the Republic of Armenia authored by Karen Komendaryan and Ruben Arutchyan was approved and chosen out of the other design proposals under the Central Bank of Armenia Board Resolution No. 25, dated 09.10.2001. The sign of the Dram was registered in the State Standard of the Republic of Armenia in 2007 and in the ISO/UNICODE international standards in 2012. On September 21, 1991 Armenia was proclaimed as an independent republic. On this occasion there arose a need to create a national currency. On March 27, 1992, the name was chosen for the Armenian currency, the Dram, and sketches of the future banknotes were prepared. The first series of banknotes of 10, 25, 50, 100, 200 and 500 dram entered into circulation on November 22, 1993. Then, in 1994 banknote series was added with the banknote of 1 000 dram denomination, and later, in 1995, with 5 000 dram banknote. The design of the banknotes contained images of modern and historic, architectural and cultural monuments of Armenia. While working on the first series of banknotes, the Central Bank of the Republic of Armenia actually started a tradition of representing on them the most important aspects of the Armenian cultural and historical heritage. Banknotes of the first series circulated until 2005, although since 1995, work began on the development of a new, second series of banknotes. The design concept changed definitely. Banknotes became more sophisticated in terms of technical parameters: they were more in line with international standards and the latest international trends. The banknotes which replaced the first series began portraying the most famous personalities who have left an invaluable imprint on the culture and historical heritage of Armenia. In the period from 1999 to 2010 banknotes of 50, 100, 500, 1 000, 5 000, 10 000, 20 000, 100 000 dram were in circulation. The first two of them are not circulating nowadays. On June 4, 2001, the first commemorative banknote of 50,000 dram to celebrate the 1700th anniversary of the adoption of Christianity as the state religion in Armenia was issued. The design of the banknote was different from the general concept adopted for the second series of the Armenian banknotes. The banknotes of the second series, including the commemorative one, were re-issued in the form of reprints, keeping with the overall design as well as inscriptions. In the process of reprinting particular attention was paid to improving the security of banknotes and bettering their overall quality. Nearly all the achievements of modern security technologies – varnishing, use of holograms, OVI, etc. – were introduced. The number of security features at the moment reaches 17, which is why the Armenian banknotes are able to meet the highest standards accepted inLaws and regulations
CBA in Armenian Constitution
The President of The Republic of Armenia shall recommend to the National Assembly the candidacy of the Chairman of the Central Bank. The main objective of the Central Bank of the Republic of Armenia shall be to ensure stability of prices in the Republic of Armenia. The Central Bank shall develop, approve and implement monetary policy programs. The Central Bank shall issue the currency of the Republic of Armenia – the Armenian Dram. The Central Bank shall be independent whilst performing the tasks and functions granted by the Constitution and the law. The Chairman of the Central Bank shall be appointed by the National Assembly upon the recommendation of the President of the Republic for a six-year term. The same person may not be elected to the office of Chairman of the Central Bank for more than two consecutive terms. In cases prescribed by the law the National Assembly may by a majority of its votes and upon the recommendation of the President of the Republic remove the Chairman of the Central bank from office.(Article 83.3)Currency legislation and regulatory acts
Armenian Laws *Armenian Law oStatistics
According to the article 5(g) of the Law on the Central Bank of RA the Central Bank of the Republic of Armenia (CBA), implements collection, compilation and publication of monetary and financial statistics in order to carry out its objectives. Particular tasks in this area include: * Collection and compilation of accurate monetary and financial statistics; * Provision of accurate, reliable and timely data to the public through statistical publications and website of the Central Bank. Since 2011 the responsibility for the compilation of the external sector statistics (balance of payments, international investment position and external debt) has been undertaken by the Central Bank of Armenia.To carry out its objectives according to the Law on Central Bank of RA, the Central Bank of Armenia, within the framework of the CBA Board Resolutions and the CBA Chairman Decrees, is engaged in the collection of other sectors' statistics (Real, External and Government Sectors) for its internal use. According to the Law of RA on State Statistics the National Statistical Service of RA (NSSA) is officially responsible body for statistics of these sectors of economy, the website of which iCooperation with international financial organizations
There is integration of the Republic of Armenia and its Central Bank in the world community. The CBA maintains mutual cooperation with: *Independence
The sole founder of the Central Bank is the Republic of Armenia. The Central Bank is independent from state authorities of the Republic of Armenia in implementing its activities in the context of setting targets and deciding on the tools to achieve these targets. Independence is needed in order to implement effective policies aimed to maintain price and financial stability. In doing so, the Central Bank makes its contribution to a sustainable economic growth in a longer run.See also
*References
External links