Armen Hakobyan

The importance of this study is underscored by the increasing significance of economic resilience in the face of global instability. The Russian-Ukrainian armed conflict, initiated by Russia in 2022, has caused profound shifts in the geopolitical and economic environment, affecting capital flows, foreign exchange transactions, and the credit and financial policies of countries in the region. For the Republic of Armenia, whose economy is closely tied to external markets, such events present both substantial challenges and opportunities for adaptation and transformation within the banking sector. The objective of this article is to analyze the dynamics of financial results of commercial banks in Armenia and assess the impact of the Russian-Ukrainian armed conflict on the functioning of the banking system. By analyzing financial data from five leading banks from 2020 to 2023, the study evaluates key indicators such as total assets, net profit, capital, and loan portfolios. The findings indicate significant growth in financial indicators, particularly in 2022 and 2023, driven by increased remittances, migration, and tourism flows from Russia and Ukraine. The results suggest that, despite the challenges posed by the conflict, the Armenian banking sector demonstrated resilience and capitalized on external economic shifts. This study concludes that geopolitical crises can create opportunities for the financial sector when managed effectively. Further research is needed to explore the long-term effects of the conflict on Armenia’s broader economy and the adaptation of banking policies to future geopolitical challenges.

Acknowledgment
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