The Parliament of Georgia adopted a new law, which will allow the National Bank of Georgia to receive a deposit from the Deposit Insurance Agency. The new law will enter under force from January 1, 2022.
According to the law, the LEPL "Deposit Insurance Agency" can open a deposit account with the National Bank. In addition, according to the law, the NBG can receive deposits from commercial banks operating in the country.
The Deposit Insurance Agency insures deposits of up to 15,000 GEL placed in the commercial banks. Insurance currently applies only to the private individuals’ deposits, although Parliament is considering a bill that would extend deposit insurance to legal entities as well.
From July 1, 2020, the deposit insurance limit for individuals has been increased from 5,000 GEL to 15,000 GEL. In the case of legal entities, the limit will be 15 000 GEL.
Commercial banks pay monthly fee (premium) for deposit insurance to the State Deposit Insurance Agency. The monthly fee for the deposits in GEL totals to .067% of the deposit, while in foreign currency - 0.1%. The average amount of monthly premiums paid by banks over the past few months is 2.5 million GEL. During 2020, the banking system paid a total of 22.6 million GEL in the insurance premiums. The total volume of the Deposit Insurance Fund is 66.6 million GEL. The agency invests this amount mainly in government securities.
