According to Kakha Kiknavelidze, Director General of Bank of Georgia, new regulation of the National Bank is quite strict and will significantly influence the market. “We understand NBG’s initiative and support it, however, in my opinion, this last regulation will significantly influence the market. For that reason, we are already having consultations with the National Bank.
We offer that NBG sets deadline for commercial banks on 1st of June, so that they can submit their vision of impact of the new regulation on our business, our clients and I think that we will be ready much earlier and I hope we will be able to come to an agreement with NBG,” – stated Kakha Kiknavelidze and noted that the loan volume and its growth will be significantly influenced by the regulations.
The regulation implies that as from 7th of may 2018, limitation will be set for commercial banks for issuance of credits. According to NBG requirement, the banks should issue loans only after fullfledged analysis of client’s paying capacity. Total amount of such loans should not exceed 25% of the bank’s supervisory capital. Correspondent amendments were made to the Regulation on Credit Concentration and Large Risks in Commercial Banks.
