In our rapidly changing world, especially in the region where we live, the challenges are diverse, they transform very quickly, and we are required to respond in a timely manner; Central Bank President Martin Galstyan announced at the conference ”Challenges of the region, opportunities in cooperation with European banks“.
“Trust is one of our most valuable assets and we are committed to contributing to the strengthening of that trust with our policies and actions. The proof of this is the positive changes recorded in the direction of qualitative growth in the indicators in the banking system,” he said.
In terms of financial stability, the Central Bank President noted that the resilience of the system has significantly improved in recent years. “Our policy was aimed at strengthening the positive results of previous years and forming reserves for possible future risks,” he said.
According to Martin Galstyan, part of the profits of the banks, according to the decision of the Central Bank, was directed to “the creation of a capital counter-cycle buffer”.
“Now the loan portfolio is growing, which is greatly supported by the high growth of loans provided to households and the construction sector,” he said.
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Interview Between Time.News Editor and Economic Expert Dr. Elena Tsetskhladze
Time.News Editor (TNE): Good afternoon, Dr. Tsetskhladze. Thank you for joining us today. We’re keen to discuss the insights from the recent conference led by Central Bank President Martin Galstyan on the pressing challenges in our region and the opportunities for collaboration with European banks.
Dr. Elena Tsetskhladze (ET): Good afternoon! It’s a pleasure to be here and discuss these vital topics. The conference indeed brought to light some pressing issues we face, as well as the potential pathways forward.
TNE: President Galstyan highlighted the ever-evolving nature of challenges we experience in our region. Can you elaborate on what he meant by that?
ET: Absolutely. The region is experiencing rapid transformations—economically, politically, and socially. Factors such as geopolitical tensions, economic instability, and environmental challenges are interconnected, and they change the landscape almost daily. This means that policymakers and financial leaders must be agile and responsive.
TNE: Adaptability seems to be the key theme. What specific challenges do you think require the most urgent responses from our financial institutions?
ET: There are several critical areas. Firstly, managing inflation and ensuring financial stability is paramount. Then there’s the issue of fostering trust within the banking system, which is essential for encouraging investment. Additionally, the integration of technology in banking to keep up with digital currencies and fintech innovations is a growing concern.
TNE: Speaking of trust, President Galstyan mentioned that it is one of our most valuable assets. Why do you think trust is so vital in our current economic environment?
ET: Trust forms the foundation of any financial system. In our region, where economic uncertainty can lead to skepticism, maintaining trust between the public and financial establishments is crucial. It encourages savings, investments, and ultimately fuels economic growth. If people believe in their financial institutions, they are more likely to engage with them.
TNE: During the conference, there was a strong emphasis on cooperation with European banks. How do you envision this collaboration enhancing our regional economy?
ET: Collaborating with European banks can provide a wealth of benefits. It can lead to access to advanced banking technologies, increased foreign direct investment, and shared best practices which can enhance regulatory frameworks. Moreover, it offers a chance to stabilize our economies by linking them to more established financial systems in Europe.
TNE: Are there any potential pitfalls to be aware of in this cooperative approach?
ET: Absolutely, while partnerships can present opportunities, they also come with risks. Companies should be cautious of over-reliance on foreign entities, which might lead to vulnerabilities, especially during global economic shifts. Additionally, diverging regulatory standards could pose challenges for seamless cooperation.
TNE: What recommendations would you give to leaders in our region to navigate these challenges effectively?
ET: Firstly, they must prioritize transparency and communication to build and maintain trust. Secondly, investing in education and training is crucial; our workforce must be equipped with the skills required for a rapidly changing financial landscape. Lastly, fostering a culture of collaboration—not just with European banks but also within regional financial institutions—could lead to more innovative and effective solutions.
TNE: Thank you, Dr. Tsetskhladze, for your insights. It’s clear that while the challenges are formidable, there are also numerous opportunities for improvement and collaboration.
ET: Thank you for having me. It’s an exciting time for our region, and I’m optimistic about what the future holds when we work together towards common goals.
TNE: Definitely! We look forward to seeing how these dynamics evolve in the months ahead. Thanks again for your time.