From Bloomberg By Jessica Brice, Ney Hayashi and David Biller September 22, 2014 In 2004,
Regulation 14 (Prudential Standards for Activities of Credit Organizations) of 2002
(amended through 2008)
Regulation 14 (Prudential Standards for Activities of Credit Organizations) determines the scope, prudential standards, limits, calculation, and components for calculation for the activities of credit organizations operating in Armenia.
This regulation provides for the following:
- Financial operations admissible for groups of credit organizations;
- Prudential standards and limits (including minimum capital requirements);
- Calculation of prudential standards; and
- The responsibility of managers for noncompliance.
The regulation specifies that unlike credit organizations, universal credit organizations are not permitted to purchase, sell or manage bank gold and standardized bullion coins. Additional restrictions apply to their issuance and allocation of bonds.
The second annex of the regulation provides for foreign exchange risk calculation and the third annex outlines minimum requirements for mortgage loans warranting 50% risk weight.