Republic of Armenia

The Central Bank of Armenia (CBA) has made significant progress in its approach to banking supervision with adoption of the RBS framework and addressing gaps in the regulatory framework identified in the 2012 Basel Core Principles (BCP) assessment. The recently adopted RBS framework provides a forward-looking assessment of the risk profile of individual banks and groups and assigns supervisory resources more proportionate to the risk in the system, and to the risks within individual banks. The use of risk teams to take ownership of individual risk across the banking system also contributes to identification and monitoring of risks emanating from banks and the banking system as a whole. In addition, improvements have been made in the regulatory regime regarding requirements for risk management, stress testing, corporate governance, country risk and consolidated supervision.