In the first years of independence, Armenia faced considerable economic and institutional challenges. And it was then that the country’s banking system, still in its initial phase, tried to assume a leading role. The governor of the Central Bank of Armenia (CBA), Martin Galstyan, stated this during the “The Future of Banking: Sustainable Innovation and Perspectives” banking forum in Yerevan on Tuesday.

According to Galstyan, despite the limitations at that time, consistent reforms made it possible to build a stable and reliable banking system in Armenia.

The CBA chief added that over the past 30 years, the development of Armenia’s banking system has been dynamic and full of challenges. Galstyan stressed the importance of the creation of a deposit guarantee fund, credit bureau and some other infrastructure, as well as the implementation of initiatives aimed at protecting customers, and this boosted public trust in Armenia’s financial institutions.

Martin Galstyan noted that as a result of all this, by the end of 2024, the assets of the banking system of Armenia will exceed GDP, compared to 20% of GDP in the early 2000s.

“Despite the challenges, the [banking] sector [of Armenia] is well positioned to meet the needs of the future. Growing economic and geopolitical uncertainty, digital transformation, and the importance of managing associated risks obligate us to be flexible,” the CBA governor concluded.