FINANCIAL STABILITY
Sustainable Finance
Research and Analytical Work
The Central Bank of Armenia conducts research and analytical work in the scope of Enhance Markets pillar of the sustainable finance roadmap.
Risk Radar
Risk Radar is designed to assess Environmental, Social, and Governance (ESG) and climate-related risks across economic sectors. It evaluates how vulnerable each sector is to ESG and climate challenges by analyzing physical, transitional, and other ESG risks. . The Risk Radar was developed as a risk management tool that can be used by banks when making lending decisions.
The full version of the tool available
here in English.
Research project on climate change and financial stability
The Central Bank of Armenia is conducting research on the impacts of climate change on financial stability. Climate change is affecting communities worldwide, with far-reaching consequences across various economic sectors. In Armenia, as in many other countries, the financial sector is not immune to these challenges.
There is growing global recognition that climate change-induced disasters could threaten the stability of financial systems. These risks manifest through increased loan losses, the repricing of financial instruments, and potential impacts on the solvency and profitability of financial institutions. But how significant are these risks for Armenia’s financial system? Do climate risks in Armenia affect the level of non-performing loans, the volume of liquid assets?