The acquisition of Ameriabank by the Georgian Bank of Georgia Group PLC (BOGG) can be seen as a step towards regional integration in the financial sector. This was stated by Karen Zakaryan, the Executive Director of the Financial Market Participants Association "Finarm," during a conversation with BMG on the sidelines of the Doing Digital international forum taking place in Yerevan.
Zakaryan recalled past attempts by Armenian banks to establish themselves in the Georgian market, which were unsuccessful. "However, this deal between Ameriabank and BOGG is better prepared and has a higher chance of success. It's crucial that the Bank of Georgia Group is not just an ordinary bank; it's a financial institution listed on the premium segment of the London Stock Exchange, which brings additional opportunities," explained Zakaryan.
In this regard, he considers it significant that a financial organization like BOGG is entering the Armenian market, especially considering that Ameriabank already holds stable positions there, sets quality standards, and is one of the largest banks in the country.
"I believe we can expect interesting synergies here, both in terms of developing new banking products and additional financial opportunities for the management team of Ameriabank. In other words, Ameriabank's existing competitive advantages will be supplemented by new opportunities thanks to BOGG, and in the long term, we can observe the changes it will bring to the market," the expert clarified.
In the future, Karen Zakaryan predicts consolidation processes in Armenia's banking sector, which currently operates 17 commercial banks. However, he does not attribute this to the entry of such a major player as the Bank of Georgia Group into the market. "Consolidation processes were slowed down by the unusually high profits of banks over the past two years, but I still think they will continue. Seventeen banks for Armenia is not few, and there are opportunities for optimization," said the Executive Director of "Finarm."
Nevertheless, he noted that the requirements for the statutory capital of Armenian banks are quite high.
"In Armenia, this figure is 30 billion drams (approximately 80 million dollars), which significantly exceeds Georgia's standards. Thus, banks in Armenia are quite stable. And although at first glance, this may create obstacles for consolidation, in the conditions of high competition, there is nothing that would prevent our banks from transforming from within, becoming more innovative and digital financial institutions," concluded Karen Zakaryan.
Earlier, the Central Bank of Armenia's Board preliminarily approved the deal to acquire Ameriabank by the Georgian international bank Bank of Georgia, which the parties announced on February 19.
According to the deal, Ameriabank and BOGG PLC (Open Joint Stock Company "Bi-O-Dzhi-Dzhi," hereinafter "Group") - an international financial group registered in the United Kingdom - have reached an agreement for the Bank to join the Group as a full-fledged independent member.
Thus, the Group will become the main shareholder of Ameriabank, while the European Bank for Reconstruction and Development will retain a 10% stake.
