# **I. Bank Shares in Armenia**

## **Bank Market Shares**

The data source concerning to banks was the financial-banking portal www.armbanks.am, the leading Internet edition in Armenia covering the countries financial and banking sectors,<sup>1</sup> exploring <u>http://www.armbanks.am/en/banks/</u> for banks information and http://www.armbanks.am/en/credit- <u>companies/</u> for credit organizations (CO).

Through the portal I obtained data on total assets by bank and credit organizations (CO) in Armenia, owners-shareholders of the bank and the percent of the bank owned by each owner-shareholder. After collecting data I defined the market share of each bank and CO as a share of total bank and CO assets in the country. Then I divided the regions into Armenia (ARM), CIS, the European Union (EU), USA, and the Rest of the World (RoW) to calculate the market shares by region.

## **Ownership Shares of Banks**

Each bank’s market share was then allocated among geographic regions according to the shares of ownership of the bank. Then I summed across the banks to obtain total market shares by region. However, in some cases, I had to investigate bank websites to get the required ownership information. In the Table 1, I list the result of these calculations. The results of our supplementary inquiries are listed below The results we get on the owners shares of the banking sector of Armenia are as follows (in percent): Armenia, 25.98; CIS, 36.17; EU, 15.59; USA 10.12; ROW 12.15, (see Table 1).

## **Supplementary Information on Ownership Shares of Armenian Banks**

**1. ACBA-Cedit Agricole CJSC** : The ACBA bank was established in 1996, within TACIS program of the European Union. On September 15, 2006 European leading French Credit Agricole bank became the biggest shareholder of ACBA Bank, becoming a closed joint stock company and it was renamed ACBA-CREDIT AGRICOLE BANK. The shareholders are Credit Agricole Group (France) – 15.56%, JSC Sacam International (France) – 12.44%, Armenian regional farm unions particularly: Armavir - 14.08% and Ararat 12.28%. http://www.armbanks.am/en/banks/?org=3&lang=en, <u>http://acba.am/index.php</u>

**2. Ameriabank CJSC** :The bank was established in 1910 as a branch of Caucasian Trade Bank, which during the Soviet years was transformed to the Armenian branch of the USSR Vneshtorgbank. In July 1992, Armenian Import-Export Bank CJSC was founded, which received a banking license from the Central Bank of Armenia on September 8 of the same year. In August 2007, the main share holdings of the Bank (96%) were obtained by TDA Holdings Limited, an investment company affiliated with the leading and largest Russian investment group company – Troika Dialog. In 20072008, gradually increasing the Charter Capital of the Bank, the major shareholder TDA Holdings Limited increased its equity participation up to 99.9956044%. TDA Holdings Limited - 99.99% <u>http://www.armbanks.am/en/banks/?org=4&lang=en, http://www.ameriabank.am/23</u>

1. **Araratbank OJSC** : ARARATBANK was established as a result of the reorganization of Haykap Bank, operating on Armenian financial market since 1991. ARARATBANK has been functioning as an open joint stock company since August 2007. The bank is a shareholder and a full member of "Armenian Card" company since 2006. The shareholders are Flesh Ltd - 74.1%, EBRD - 25%, Resident

> 23 Apart from on-line information the www.armbanks.am portal offers also analytical research, exclusive stories and information about banks, insurance and credit organizations, their comparative financial indices as well as statistical data.

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