Change is on the horizon for Armenia’s banking sector. The 21 banks in the smallest Caucasus country are faced with an ambiguous future thanks to challenges such as the country's economic difficulties, asset deterioration and a volatile currency. However, there are also opportunities for growth through consolidation.
When looking at the macroeconomic facts, the outlook for Armenia’s banks is not rosy. The country, which joined the Eurasian Economic Union led by Russia in 2015, is heavily reliant on the Russian economy and, as the forecast for gross domestic product (GDP) growth dwindles, Armenia must brace itself.
