Microbanks in Georgia may receive expanded operating rights, including the ability to issue foreign currency loans, provide financial intermediary services and lease real estate. The changes are provided in a legislative package submitted to Parliament by Shota Berekashvili, Chair of the Economic Policy Committee, and other committee members.
Under the proposed amendments, the minimum share of loans issued for business purposes will decrease from 70% to 50%, while the maximum lending limit for a single borrower or group of related borrowers will double from GEL 1 million to GEL 2 million. Providing financial intermediary services will require prior approval from the National Bank of Georgia (NBG).
The legislative package also introduces changes to ownership requirements and administrative positions in banks and microbanks, as well as simplifies licensing procedures for reputable foreign banks seeking to operate in Georgia.
The amendments aim to increase competition in the banking sector and bring financial regulations closer to international standards. The changes will take effect upon publication, while the NBG will have 12 months to prepare the relevant regulations.
