National Bank of Georgia President Natia Turnava says the high level of concentration in the country’s banking sector is a longstanding and complex problem. Speaking in Parliament’s Finance and Budget Committee, she noted that the NBG is focused on measures that will gradually strengthen competition in the market.
According to Turnava, one positive development is the ongoing merger between Basisbank and Liberty Bank. While the combined institution will still be smaller than the two dominant players, she said it will be stronger, better positioned to issue larger loans to the real economy, participate in syndicated lending, and compete more effectively on interest rates.
Another important direction, Turnava added, is the development of legislation supporting the payments sector. Thanks to new regulations, open banking rules and incentives for fintechs, payment service providers are increasingly competing with commercial banks, helping reduce market concentration and pushing down commissions.
As of Q1 2026, Georgia’s two largest banks control 75% of total banking assets and generate 86% of the sector’s profits — a level of dominance the NBG aims to offset through long-term competitive reforms.
