The growth rate of lending in Armenia reached around 21% by 2023, and the deposit portfolio of the banking system increased by 9.2%. This was announced by the Chairman of the Central Bank of Armenia Martin Galstyan, at a press conference dedicated to the financial stability report for the past year.
According to him, the growth in deposits was mainly driven by an 18% increase in deposits from Armenian residents over the year. "Investments in securities also grew by 18%. Market activity was noticeable in almost all lending directions, including consumer, agricultural, and business loans, which increased by 20-21%," Galstyan said.
The growth of mortgage lending, according to the Central Bank President, slowed due to the base effect but still amounted to about 28%. Amid high economic growth rates, the quality of the loan portfolio improved, with the share of non-performing loans remaining below 4%, which is lower than the long-term average.
Overall, in 2023, as noted by the Central Bank head, Armenia's financial system demonstrated significant asset growth across all segments, ensuring the stable functioning of financial intermediation.
Banking system assets accounted for 83% of all financial system assets, reaching 9.2 trillion drams (approximately $23.6 billion). The financial stability report includes an analysis of current events in the banking system, potential risks, and the results of stress tests.
