Shota Berekashvili, Chairman of Parliament’s Economic Policy Committee, says proposed amendments to Georgia’s banking legislation aim to improve transparency, customer awareness and competition in the financial sector. Speaking in Parliament, he argued that attracting more foreign banks would increase competition, support economic growth and ultimately make lending more affordable for consumers and businesses.

Berekashvili cited India as an example, noting that although it is an emerging economy, its banks are highly stable and hold strong international credit ratings. He said the proposed changes would make it easier for reputable banks from countries beyond the traditionally recognised developed economies to enter Georgia. He also highlighted that two banks currently account for approximately 75–80% of Georgia’s financial sector, making greater competition particularly important.

The proposed amendments to the Law on the Activities of Commercial Banks would simplify licensing requirements for foreign banks operating in countries recognised as trustworthy and holding credit ratings that meet the National Bank of Georgia’s requirements. Eligible institutions must also demonstrate a strong reputation, extensive banking experience, stable financial performance and transparent ownership structures. Within 12 months of the law taking effect, the National Bank must establish the criteria for identifying trusted countries and acceptable credit ratings.

The legislative package also proposes reducing the mandatory share of business loans in microbanks’ credit portfolios from 70% to 50%. Berekashvili argued that this would allow for better portfolio diversification and lower credit risks, potentially encouraging more microbanks to enter the market. The amendments were registered in Parliament on November 3, with the National Bank of Georgia stating that their broader objective is to attract reputable international financial institutions and strengthen competition in the banking sector.