19.Dec .2019 15:21

Why the NBG Mitigates Banking Regulations - Koba Gvenetadze's Answer

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The planned changes will be aimed to simplify regulations from technical point of view, they must become less bureaucratic, - National Bank President Koba Gvenetadze responds to a question about mitigating the regulations.

According to him, changes were necessary as the growth of consumer loans and retail sector was very high.

"We saw that growth of this sector has limited the growth of other sectors’ lending, such as SMEs, the corporate sector, and etc. Therefore, it was very necessary to introduce responsible financing rules that many central banks implemented, but at the same time we said that some period would be required to see what needs to be changed. We are now working with the sector on the change option and these changes will be offered soon. We want this process to become less bureaucratic, more based on principles. What was done was necessary to make the growth very sustainable. The planned changes will be aimed to simplify regulations from technical point of view, they must become less bureaucratic,”Koba Gvenetadze said.