Of course several banks didn’t agree with this idea. The head of the CB has threatened the Armenians banks saying that if the union of banks doesn’t agree with this, he will solve the problem with the help of Mass Media.
If we take into account that for these violations banks are imposed penalties and are punished already, we may understand their approach. But the CB is not satisfied with these penalties because they are not enough for banks and don’t make them work in a duly manner. The CB has decided to apply new methods for regulating this field. The main reason that banks don’t agree with this is that the publication of the names of those banks will lower their reputation.
Definitely the wish of the CB head will come true very soon and as he says he is waiting for the response from the banks union.
Nowadays some trade banks often violate their standard regulations, and the CB says that if they publish the names of those banks they will do their best not to “lose” clients and thus will not make violations any more.
Is this step good for our banking system, which is currently in the formation period? People don’t trust banks and this decision may harm the reputation of banks more. According to doctor of economical sciences, MP Tatul Manaseryan this step will not be bad for our banking system. He thinks that the CB actually had to do this a long time ago. According to him, it is very important for the banking system to prevent banks from normative violations, which will be done if the recommendation of Tigran Sargsyan is approved. This will make banks think about their reputation seriously. Even more, he thinks that banks should have done this before themselves. By the way, according to Mr. Manaseryan the normative of banks may be revised and amended in the future.
“This is a very good tool and is applied all over the world”, says former minister of finances, current deputy rector of the Russian-Armenian Slavonic University, head of its financial department, Edward Sandyan. According to him, with this the CB doesn’t classify banks, but creates images of banks and publishes real information about them. According to him this institution exists here but it doesn’t work well now. The problem is that banks have to make financial reports once every three months, where they have to write about how many times they have violated norms. But according to Mr. Sandoyan this information is useful only for specialists and people don’t understand what is written there. Mostly people don’t read these reports, besides that people will pay more attention to it if it is published by the CB. As a specialist he thinks that the CB should be free in the banking system, i.e. it shouldn’t interfere much. But he thinks that when controlling the field the CB should be more careful and should apply its control mechanisms. And one of the mechanisms the CB can use is the publication of the names of the banks that violate norm regulations.