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Bruno Balvanera: Investors’ Appetite is Increased on GEL

Bruno Balvanera: There are Slim Chances for New Banks to Enter Georgian Market

The European Bank for Reconstruction and Development (EBRD) estimates the possibility of third large bank entering Georgian market, however, considers that currently it is less likely to happen. Regional representative of EBRD, Bruno Balvanera declared that two large banks already own large shares at the market which limits the possibility of new bank, entering the market.

EBRD has been supporting stable banking sector in Georgia for years. In 2008, global economic crisis and Russian-Georgian conflict made a big pressure on banking sector. At the same time, EBRD supported capitalization of two Georgian banks – TBC Bank and Georgian Bank. At present, there are two large and few small banks at the market.

“I think there is a place for the third large bank at the market; however, I don’t see how small banks could be consolidated. “We would be glad to welcome third large bank in Georgia, however it would be very difficult to make this happen considering two banks already hold large shares at the market”- declared Bruno Balvanera.