Law on Banks and Banking of 1996
(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.