Natia Turnava , Acting Governor of the National Bank of Georgia, made amendments to the “Regulations on Concentration of Risk Positions and Large Risks in Commercial Banks”.
According to the updated document, Georgian banks are restricted from granting loans to foreign banks, in amounts exceeding 15% of the regulatory capital of the Georgian systemic bank.
The updated Regulation is as follows:
"4. It is prohibited for a bank to create such risk positions with the aim of directly or indirectly financing:
- a) the acquisition of equity or debt instruments of the same bank;
- b) the acquisition of equity or debt instruments of a shareholder, intermediate owner and beneficial owner of a significant share of the same bank, or a controlling person or of the parent company/enterprises of the same bank;
- c) the acquisition of equity or debt instruments of a subsidiary of the same bank or of a subsidiary of the parent company/enterprises of the same bank," the document states.
