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Capital Requirement for Commercial Banks Grows on January 1

Capital requirement for commercial banks will grow to 30 million GEL starting January 1, 2018. The first phase of the 30/40/50 million obligatory requirement will expire at the end of 2017.

Increased coefficient of capital adequacy will be also introduced on January 1, for additional buffers created under various signs (Concentration, competition, system), under a 4-year schedule. At the first stage, TBC Bank, Bank of Georgia and Liberty Bank will have to take corresponding steps. Additional requirement for capital instruments for 2 system banks is +2.5%, while the figure is +1.5% for Liberty Bank as it serves social liabilities.

At the end of 2018 TBC Bank and Bank of Georgia must raise the coefficient by 1%, while Liberty Bank must increase the coefficient by 0.6%. At this stage,the capital adequacy coefficient for all commercial banks is 10.5%.