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Khazaradze: Doing Business Secretly With Depositors’ Money is Not Right

Khazaradze: Doing Business Secretly With Depositors’ Money is Not Right

Doing business secretly with depositors’ money is not right; – founder of TBC Group declared on the risks caused by participation of banks in the non-core businesses, including interest conflicts with the clients.

Mr. Mamuka  Khazaradze says that historically, non-core assets have been always separated from the balance of TBC Bank, including Borjomi, American Academy or others. The businessman says that bank funds consist of depositors’ and each of us money and TBC bank has used this fund in the long-term projects due to 2 reasons:

The first, bank always must be ready to return money upon the depositor’s request and the other, the bank must avoid any interest conflict, because clients trust banks and banks know much about them, so non-core businesses must be separated from banks.

As you know, the separation of non-core assets from the commercial bank has been completed at this level, but the National Bank is considering the expansion of supervision scope, which envisages several regulations for the holdings, which own the banks.

NBG held presentation of the 2nd stage of separation on January 25 in Kutaisi. Koba Gvenetadze said that the expansion details will be announced soon, after the processing of bill in NBG.