Georgian microbank Crystal says proposed regulatory changes, including doubling the maximum lending limit from GEL 1 million to GEL 2 million per borrower or related group, will allow it to finance more medium-sized and large businesses.
Speaking on the TV program Business Course, Crystal CEO Ilia Revia said allowing microbanks to issue foreign-currency loans and easing portfolio requirements would also strengthen competition and potentially reduce interest rates.
Under the proposed changes, the minimum share of business and agricultural loans in microbanks’ portfolios would decrease from 70% to 50%. Revia said this would encourage diversification and allow more financial institutions to enter the market, benefiting consumers.
He added that Crystal’s medium- and long-term strategy includes lowering borrowing costs. Reduced funding and currency hedging costs, he said, could eventually translate into more affordable loans for customers.
