Competition Protection Issues of the Banking System in the Republic of Armenia

The problems of protecting economic competition in the banking system, increasing the efficiency of competition regulation, taking into account the modern realities of digitalization and the widespread use of advanced financial technologies are gaining increasing importance and relevance. An effective state policy in the field of protecting economic competition is the key to effective protection of the interests of banking services consumers. The formation of a fair competitive environment in the banking system of the Republic of Armenia needs increasing the role of the competition authority, to create legal and institutional prerequisites for its effective interaction with the Central Bank of the country. The underestimation of the role of the competition authority of the Republic of Armenia for two decades has led to low rates of detection of anti-competitive agreements and concerted actions, abuse of dominant position, and limited advocacy of competition. Competitive regulation in the sphere of banking services in the Republic of Armenia is of priority importance, taking into account the influence of the banking system on the formation of a favorable business climate and on the development of the national economy. The threat of cartelization of the banking system, the risks of pursuing a coordinated policy by commercial banks, and the conclusion of anti-competitive agreements necessitate the development of effective measures and tools for identifying anti-competitive practices of commercial banks. Far from diminishing the role of the Central Bank in ensuring financial stability, regulating the activities of commercial banks, it is obvious that the role of the competition authority must be increased, since only effective interaction between the two state structures can ensure the formation of a fair competitive environment and effective monitoring of the activities of commercial banks in the context of competition regulation. Based on the analysis of indicators of market concentration of the banking system of the Republic of Armenia, conclusions on the level of development of competition are presented, as well as proposals for improving the efficiency of competition regulation.