Relations between Banks and Customers

The Republic of Armenia Law on banks and Banking regulated the relations of banks with customers. Article 38 of the Law (Relations between banks and customers) provides:

1. Relations between banks and customers shall be of contractual character.

2. Banks shall set such rules for activities which will preclude conflict of interests, particularly:

a) liabilities of the bank to one customer may not interfere with its liabilities to any other customer

b) interests of the bank and the employees shall not interfere with the liabilities of the bank to its customers

3. On signing a loan or any other agreement with a customer, the bank may not oblige the customer to sign any additional banking agreement.

4. Bank shall provide banking data subject to disclosure at a request of the customer, except the cases defined in the legislation.

5. Bank is liable for violation of rules defined in Sections 2,3 and 4 of this Article, in the manner envisaged by the legislation.
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