Bankers themselves confess that the banking system of
Bankers point out the deterioration of the social conditions of citizens who are simply forced to apply to the banks repeatedly. At the same time, the banks reproach the citizens for excessive prodigality: "Our compatriots have acquired the debt bondage syndrome - an American disease of living on credit. Moreover, people are borrowing money to buy not only food and clothes but also expensive smartphones".
According to the bankers, the system has come across the problem of continued lending reduction due to the shortage of "good" customers. Under the current conditions, experts expect the banks to become fewer within the next three years. "There will be no more than 15 banks in the market. In a perfect world there should be no more than 10 banks. They will be able to ensure optimal distribution of customers among themselves and to maintain the operating profitability at the same time", experts say.
Bankers believe that the inevitable consolidation will help restore the former investment attractiveness of the banking system. "The average Return on Equity (ROE) in the banking system dropped to 8% in 2013. Not a single shareholder will invest money in the banking sector with such a ROE. As regards investors, they would prefer deposits with the yield of 12% p.a.", experts say.
According to the Bulletin "Financial Ratings of Armenian Banks" by the
Banking experts assure that the real condition of the Armenian banking system is not reflected in the indices published by the banks. The banks are exaggerating their financial indices and creating an illusion that the banking system keeps on developing.
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