The stability of Financial system in Armenia

Ing. Narek Hovakimyan

Master's thesis

Abstract:

The current thesis paper refers to the financial stability issues and the ways of developing them in RA. The goal of the diploma thesis is to assess the stability of the financial system in Armenia based on analysis and comparison of selected country. Research also aims at analyzing and introducing the measures directed at stabilizing and developing the financial system and the ways of improving them; respectively the research consists of three chapters. Chapter one dwells on the essence of the financial system, its subjects and evolution development, as well as ways of ensuring financial stability. In chapter two a reference is made to the necessity for financial stability in RA, the responsibility of the Central Bank for ensuring financial stability and the significance of financial investments as the basis for stabilizing the financial system. Chapter three discloses the dynamics of state budget revenues and expenditures, ways of reducing public debt and deficit, as well as the issues of financial stability management and the ways of reinforcing them. It is due to mention that the financial system is still at the stage of the formation where it is the banking system that dominates. The latter’s stability has virtually become a characterizing factor of the financial system stability of the republic whose improvement policy is exclusively based on economic assessments. At the end of the thesis paper, some steps are proposed which will contribute to the RA financial stability.

Keywords

The financial system, financial stability, the banking system, state budget, Central Bank.

Language used: English

Date on which the thesis was submitted / produced: 12. 5. 2017

Thesis defence

• Date of defence: 19. 6. 2017
• Supervisor: Ing. Luděk Benada, Ph.D.
• Reader: Ing. Bc. Jana Hvozdenská

Masaryk University

Faculty of Economics and Administration

Master programme / field:
Finance and Accounting / Finance (eng.)