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Home / Banking / Mestivitishvili: Creation of Additional Buffers Will not Slow Down Banks’ Lending
Mestivitishvili: Creation of Additional Buffers Will not Slow Down Banks’ Lending

Mestivitishvili: Creation of Additional Buffers Will not Slow Down Banks’ Lending

Banks will be able to create additional buffers of capital without any pain, – considers the Vice-President of the National Bank. He does not expect slowdown of lending by the new regulation.

Archil Mestvirishvili says that introduction of buffer of conservation, systemability and contra-cycling is made within the framework of the Pillar III standards. Creation of buffers is a gradual prolonged process, so the banks will not need to “put aside the money” and additional injection will not be problematic.

“The system should be prepared for future challenges when the structure is healthy”, – said Mestvirishvili and noted that these measures were important because of the concentration in Georgian banking system.

The National Bank of Georgia has begun tightening of regulations for the banking sector last year. The supervisory capital demand has been increased and regulation of additional buffers has been activated.