National Bank President Natia Turnava says the acquisition of Liberty Bank by Basisbank will strengthen competition in Georgia’s banking sector by creating a larger third player.
Speaking to BMG, Turnava noted that the National Bank granted final approval for the deal about a week ago after working on the details with both banks for nearly two years as terms evolved through negotiations.
She emphasized that the regulator assessed the impact of the merger on market competition positively, concluding that consolidation of the third and fourth largest banks will enhance competition rather than weaken it. According to her, a stronger third bank will improve access to financial services, potentially leading to lower interest rates and reduced fees for customers.
Turnava also underlined that the structure of the deal includes safeguards to protect customers of both banks during the transition period leading up to full integration. She added that while the merged entity will still be smaller than the two leading banks, it represents a stronger starting point for a more competitive market presence.
Finally, she described the deal as a positive example of foreign investment, noting that Basisbank’s Chinese ownership could help attract additional international capital and support future expansion of the newly formed banking group.
