Armenia Banking Market

Armenia Banking Market Outlook - 2026

The Armenia banking market was valued at $519 million in 2018 and is expected to reach $996 million by 2026, registering a CAGR of 8.5% from 2019 to 2026. Banking is a financial institution and an intermediary, which is licensed to receive deposits and make loans in the market. Primarily, it handles cash, credit, wealth management, currency exchange, safe deposit boxes; accepts deposits; and provides other financial transactions and services in the industry. 

Moreover, the banking system largely operates into retail banking, corporate banking, investment banking, wholesale banking, and other such banking sectors in the market. The banking system is highly regulated and managed by central banks in the country. The central banks are responsible for ensuring financial stability and protecting depositors' funds, control inflation, manage liquidity in the country’s financial system, and other such allied activities in the banking sector.  

In Armenia, banking system is the biggest part of the financial market in the country. The financial system is highly dominated by banks that accounts for 88% of the total assets of the system. It has 17 commercial banks operating in the Republic of Armenia, and all commercial banks currently participating in exchange trading of Armenia. The Central Bank of Armenia (CBA) is a single regulator and is responsible for the protection of consumer rights and market conduct in the financial system of the country.

The continuous growth of small and medium-sized enterprises (SMEs) in Armenia leads to large-scale financing and lending for SMEs; thereby, propelling the growth of the banking sector in the country. Furthermore, rise in adoption and implementation of digital banking technologies in the international financial system boost the growth of the Armenian banking sector in the market. However, the financial sector is characterized by high dollarization at around 60% in the Armenian economy, which leads to large-scale foreign exchange and refinancing risks that is expected to hamper the Armenia banking market growth. 

On the contrary, the liquidity rates of the banking system continue to stay high, providing an opportunity for banks to serve customers at the expense of liquidity means in the country. Moreover, the country is set to introduce Basel III, which is an international regulatory that introduces set of reforms designed to improve the regulation, risk management, and other activities within the banking sector. Thus, providing an opportunity for banks to maintain capital buffers to cover losses during financial instability, and execute their existing offerings in the market.

Sector Segment Review:

On the basis of sector, it is divided into retail banking, corporate banking, and investment banking. The corporate banking segment accounted for the largest revenue in 2018. The level of financing and lending from banks for SMEs is quite high, owing to increase in small and medium-sized enterprises (SMEs) in Armenia. This is expected to be the major growing factor for the banking sector in the country. 

Moreover, the corporate sector is widely represented in Armenia and all 17 banks in the country with 60% of coverage are focused mainly on SMEs in the market. The banks are developing and adapting digital technologies for SMEs as these businesses are adopting technologies such as messengers, chatbots, and mobile applications to make payments in the market. This is anticipated to provide growth opportunities for the market growth. 

Type Segment Review:

By type, the market is bifurcated into closed joint-stock company (CJSC) and open joint-stock company (OJSC). The CJSC segment generated the largest revenue in 2018, and is anticipated to continue the same during the forecast period. Armenian banking sector is the biggest part of the financial market in the country. The banking system in the country is privately owned with no government share and is expected to continue to attract new shareholders in the market. In addition, the country is largely categorized under closed joint-stock company (CJSC) sector.   

The report provides a comprehensive Armenia banking market analysis of the key players operating in the market such as Ameriabank CJSC, ARARATBANK OJSC, ArmSwissBank CJSC, Converse Bank CJSC, HSBC Armenia, ID Bank, ACBA-CREDIT AGRICOLE BANK CJSC, ArmBusinessBank CJSC, Ardshinbank CJSC, and Inecobank CJSC. 

Key Benefits for Stakeholders:

• The study provides an in-depth analysis of the Armenia banking market share with the current trends and future estimations of the market.
• A comprehensive analysis of the factors that drive and restrict the Armenia banking market size is provided.
• A comprehensive quantitative analysis is provided from 2019 to 2026 to assist market stakeholders to capitalize on the prevailing market opportunities.
• An extensive analysis of the key segments of the Armenia banking industry helps understand the market trends. 
• The key players and their strategies are provided to understand the competitive outlook of the Armenia banking market forecast.

 Armenia Banking Market Report Highlights