The merger of Basisbank and Liberty Bank could mark a turning point for Georgia’s banking industry, where the absence of a strong third competitor has been felt for years. Giorgi Kepuladze, Chairman of “Society and Banks,” discussed the implications in an interview with the TV program Business Morning.
Kepuladze believes the merger will increase competition, improve the health of the financial sector, and ultimately benefit consumers. Expectations are high that Hualing, the Chinese corporation behind Basisbank, may introduce new products with more attractive interest rates, pushing the market toward better conditions.
According to Kepuladze, Liberty Bank was large in size but lacked the capacity to fully compete with the two dominant players. The merger, bringing the banks’ combined assets to around 10% of the market, could finally pave the way for a genuine third force. The integration is expected to result in new offerings, more customer-oriented services, and aggressive market engagement.
The deal may also positively influence Liberty’s image. The bank had long been associated with Irakli Rukhadze, which raised trust concerns among certain customers. With new ownership and the financial strength of Hualing, the merged entity is positioned to expand, challenge top banks, and potentially drive lower interest rates in the long term.
Basisbank has officially completed the acquisition of 95.99% of Liberty Bank’s shares after regulatory approval, setting the stage for significant shifts in market dynamics.
