19.Dec .2019 14:59

The National Bank to mitigate regulations - limits will be revised, more choices will be given to the banks

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The National Bank of Georgia will change the rules for lending to the individuals, hence more choices will be given to the banks, they can decide to issue a loan or not.

The document, envisaging mitigation of the banking regulations, signed by the President of the National Bank of Georgia Koba Gvenetadze, Minister of Finance Ivan Machavariani and Minister of Economy Natia Turnava had been sent to the International Monetary Fund.

To note, the announced changes should take effect from March 2020:

"From March 2020, we plan to improve regulation on lending to individuals and strengthen its principles-based approach. We will give commercial banks greater flexibility in managing the risks associated with lending to individuals, including reducing the number of income levels (PTIs). We will introduce more risk-based requirements for healthy individuals with respect to lending", - the document says.