Georgia’s banking sector remains highly concentrated, and attracting reputable foreign banks could strengthen competition and offer consumers more favorable interest rates, Parliament’s Economic Policy Committee Chairman Shota Berekashvili said.
Speaking in Parliament, Berekashvili discussed proposed amendments to the Law on Commercial Bank Activities, which would simplify licensing procedures for subsidiaries of trusted foreign banks. One proposed eligibility criterion is an investment-grade credit rating of BBB+ or higher from international agencies such as S&P, Moody’s or Fitch.
National Bank of Georgia President Natia Turnava also welcomed the proposed changes, saying they could encourage new financial institutions and investors to enter the Georgian market. She noted that there is growing interest both in investing in existing banks and establishing new financial institutions.
Turnava stressed that the legislation is not designed for any specific foreign bank. The NBG will assess applicants based on predefined criteria, including their home countries’ supervisory frameworks and credit ratings, as well as the individual banks’ ratings.
