New bill to help commercial banks in Georgia recover financial health
Each commercial bank will be obliged to develop and submit to the NBG an approved recovery plan. Photo: Nino Alavidze/Agenda.ge.
Tweet 
Share
The National Bank of Georgia (NBG) and the Finance Ministry of Georgia are joining forces to create new legislation for commercial banks in Georgia, aiming to identify early financial difficulties of commercial banks and eliminate the problem in the initial stages.
Another goal of the legislation is to reduce the risk of spreading financial problems to other players of the financial sector and to protect depositors and clients.
If the NBG’s involvement in the problem elimination process is ineffective and the commercial bank faces having its license revoked, the NBG will move to restructuring in order to maintain the financial stability and the critical functions of the bank, with minimum expenses to the state budget.
Restructuring can include several resolutions: merging with another commercial bank, alienation of shares, assets and/or liabilities of commercial bank, re-capitalisation of a commercial bank by issuing new shares.
On the other hand, each commercial bank will be obliged to develop and submit to the NBG an approved recovery plan, which should include measures to be implemented to improve the commercial bank's financial condition.
The parliament of Georgia is currently considering the bill.
/nbg-regulations.jpg)
The National Bank of Georgia (NBG) decreased its refinancing rate by 25 basis points following today’s advice from the Monetary Policy Committee (MPC).
Governor of the National Bank of Georgia (NBG) Koba Gvenetadze presented the annual report for 2018 at the Parliament of Georgia today and also answered questions of MPs regarding the recent fluctuation of the Georgian national currency lari. The Georgian national currency, the lari, has depreciated in value against the US dollar and the euro in recent weeks, with 1 USD costing 2.7344 GEL, while 1 EUR costs 3.4782GEL today.
New regulations on responsible lending practices that came into force on January 1, 2019 have reduced financial stability risks, reports the Financial Stability Committee of the National Bank of Georgia (NBG).
Twenty-five currency exchange offices have been closed and 10 have been fined in Georgia’s capital city of Tbilisi for not abiding by the rule of registration and regulations set by the National Bank of Georgia (NBG) in 2016.