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Business Associations Negatively Evaluate Changes in the Banking Supervision

Business Associations Negatively Evaluate Changes in the Banking Supervision

Business Association of Georgia, American Chamber of Commerce, International Chamber of Commerce, EU-Georgian Business Council, Georgia Employers Association and the Association of Bank of Georgia released a statement saying that they extremely negatively assess unfounded suspicions towards the country’s banking system and individual commercial banks about the alleged participation in some currency speculation.

For more than two years, the business sector has been talking about the need for significant reforms to stimulate the economy, such as the abolition of income tax, the private pension system reform, the development of stock markets, capital markets support and other. Against this background, we could not understand the amendments to the organic law on the National Bank initiated in the Parliament, which basic essence is to deprive the National Bank of the supervision function of the financial sector.

If we recall the recent statements by a number of officials about the lack of access to information on banking transactions, the above-mentioned legislative initiative to be directly perceived as the threat to the banking secrecy guarantees, which represent the cornerstone of success not only for Georgian, but also for any country’s banking system.

By doing so, completely groundless, hasty and unjustified, we put the banking sector, which has been the most successful and sustainable sector over years, in jeopardy; partners and founders of which are often the world’s leading international financial institutions, the banking sector attracted hundreds of millions of dollars of investments into the country in the last few years.

This legislative initiative poses a problem not only to the banking system, it largely affects the country’s business and investment environment, the formation of which often takes years and decades. We hope that before adopting the relevant decisions, the current situation will be thoroughly analyzed in order to avoid hasty decision-making and find other rational problem-solving ways, “- the Business Associations’ statement reads.