The banking systems of Armenia and Georgia share more similarities than differences, yet Armenia's market is notably more competitive.
In an interview with BMG on the sidelines of the recent International Banking Conference in Yerevan, attended by Georgian representatives, Deputy Governor of the Central Bank of Armenia Hovhannes Khachatryan discussed the characteristics of the two countries' banking systems and prospects for deeper integration.
According to Khachatryan, Armenia, like many post-Soviet states, has established close connections with European financial institutions, including the Asian Development Bank and the European Bank for Reconstruction and Development, along with correspondent banking relations with major European and American banks. “Our development has been largely parallel, especially in implementing payment systems like VISA and Mastercard,” Khachatryan noted.
Discussing differences, Khachatryan pointed out Armenia’s more competitive environment compared to Georgia, where two banks—TBC and Bank of Georgia—dominate about 70% of the market. Another key distinction is Armenia’s national payment system, ArCa.
Both countries’ banking sectors show comparable growth rates and profitability, reflecting the positive and negative impacts of economic trends and growth dynamics.
A significant step towards strengthening ties between the two countries’ banking sectors is Bank of Georgia's recent acquisition of Ameriabank, one of Armenia's largest banks.
“Trade turnover between Armenia and Georgia is relatively small, so interactions between financial institutions were limited. This acquisition changes the dynamic, fostering more active relationships. In recent years, Georgian institutions have also started purchasing Armenian Eurobonds on the government securities market, and vice versa,” Khachatryan emphasized.
Earlier, BMG reported that the Bank of Georgia Group had acquired one of Armenia’s leading banks, "Ameriabank," for $303.6 million.
"Ameriabank," with assets exceeding 1 trillion AMD (over $2.5 billion), will continue to operate with its existing management while retaining its own brand and corporate identity.
According to the Bank of Georgia Group, this deal provides BOGG PLC with an opportunity to expand its scale and geographical reach by entering a neighboring, rapidly growing economy.
