Nearly two years after microbanks began operating in Georgia, the sector is calling for a review of regulatory requirements, arguing that the current framework largely mirrors that applied to commercial banks despite the significant difference in their scale.
Gia Petriashvili, founder of microbank MBC, told BMG that one area requiring revision is the limit on deposits microbanks can attract. Currently, they cannot accept deposits exceeding the cap set under the deposit insurance system.
Petriashvili said the experience accumulated since the first microbank licenses were issued makes it timely to start discussions with the National Bank of Georgia on clarifying or improving certain regulations. He argued that the regulatory framework should reflect the differences between microbanks and commercial banks.
He particularly proposed exempting deposits placed by financial institutions, including commercial banks and international financial institutions, from the GEL 100,000 limit. While supporting full deposit insurance for funds raised from individuals, he said microbanks should be allowed to attract larger deposits from institutional sources.
The National Bank of Georgia issued its first microbank license in December 2024. Only two microbanks, Crystal and MBC, currently operate in the country.
