ՀՀ բանկային համակարգում ակտիվների որակի միկրոտնտեսական կարգավորումը / Microprudential Regulation of the Quality of Assets in the RA Banking System

The paper investigated microprudential factors and their relationship with non-performing loans. A close relationship between net profit and the percentage of nonperforming loans was revealed. A high negative correlation with lags is shown, which indicates that ROA is a good predictor for NPL. Analogous results were also noted by us when considering the indicator FCFF. Another interesting fact is that the increase in the number of assets leads to a decrease in the company's profitability both immediately and in the following years, and it is also associated with an increase in non-performing loans throughout the system. Thus, in order to create a more stable financial market, it is necessary to limit the annual growth of bank assets at the legislative level. It is obvious that extremely fast and aggressive growth is connected with potentially large risks and volatility in the banking system.