Board Resolution: Approval of Regulation 14 "Regulation of Activities of Credit Organizations - Prudential Standards for Activities of Credit Organizations"

This paper spells out the clauses contained in ‘Regulation 14, which regulates the activities of credit organizations and sets prudential standards for activities of credit organizations. The contents of Regulation 14 are as follows:

• The subject of the regulation;
• The financial operations admissible for groups of credit organizations operating in Armenia; regulations for the operations of:
  • Credit organizations;
  • Saving unions;
  • Lease firms;
  • Factoring companies;
  • Account holder credit organizations.
• The prudential standards and limits. Among other things, this sets the minimum statutory capital and the minimum total capital of credit organizations;
• The calculation of prudential standards, discussing the:
  • Contents and reduction of the core capital;
  • Contents of the additional capital;
  • Definition of long-term subordinated capital;
  • Calculation of total capital adequacy standards; calculation of core capital and risk weighted assets;
  • Review ratings of the credit organization;
  • Position of foreign currency.
• The responsibility in case of non-compliance;
• The final provisions.