Armenian banks align closely with international financial institutions, while Georgian banks follow the requirements of the London Stock Exchange.
On the sidelines of the International Banking Conference in Yerevan, Deputy Chairman of the Central Bank of Armenia Hovhannes Khachatryan shared with BMG the differences in implementing ESG (Environmental, Social, and Governance) standards within the banking systems of Armenia and Georgia.
According to Khachatryan, the two dominant Georgian banks—TBC and Bank of Georgia, both listed on the London Stock Exchange—are more actively adopting ESG standards compared to Armenian banks. "This is largely due to their listing on the London Exchange, where such standards are both required and encouraged," explained the Deputy Chairman, also highlighting the proactive stance of the National Bank of Georgia in promoting ESG practices.
Armenia is also taking steps toward ESG implementation. “The Central Bank of Armenia has released a roadmap and strategy in this area, and commercial banks have their own internal standards. While the London Stock Exchange plays a significant role for Georgian banks, in Armenia, development banks like the Asian Development Bank, the European Bank for Reconstruction and Development, and others are key drivers,” noted Khachatryan.
Soon, Armenia is expected to adopt a green taxonomy aimed at developing policies and establishing a legal framework to encourage green investments in the country. Additionally, the issuance of green bonds by the National Mortgage Company, tied to the mortgage market, is planned.
