Law on Banks and Banking of 1996

Armenia

(amended through 2007)

The Law on Banks and Banking governs banks and banking activities in Armenia. It defines the following:

  • Procedure and provisions for registration;
  • Licensing, regulation and suspension of activities; and
  • Supervision of banks registered in Armenia, branches of foreign banks, and representative and operational offices of banks.

The main objectives of this law are to:

  • Develop the banking system;
  • Promote reliability and orderly operation of banks; and
  • Establish equal conditions for free economic competition between banks.

The articles of the law deal with:

  • Organization, structure and governance of banks;
  • Procedure of licensing banks;
  • Regulation of banking activities;
  • Prudential and other economic standards of banking;
  • Registration, statements and control;
  • Infringement of legislation and applicable sanctions; and
  • The final articles of the law deal with restructuring and liquidation of banks.