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National Bank Deprived of Levers of Control over Commercial Banks

National Bank Deprived of Levers of Control over Commercial Banks

A draft law providing for the transformation of the Supervision Agency over commercial banks in an independent structure was sent to the Parliament.

According to Tamaz Mechiauri, the head of the Budget and Finance Committee of the Parliament , it will remain in the National Bank’s structure but will operate independently and will be accountable only to Parliament. “We did not inform the National Bank about this decision. The Supervision Agency must be reformed in order control over the commercial banks not to be solely in the hands of the President of the National Bank. GEL exchange rate in recent years does not reflect economic reality, accordingly, we have questions to the National Bank. I also do not rule out the possibility of establishing the Investigation Commission to study the causes of the devaluation of the national currency, “- he notes.

About a year ago, the Parliament also withdrew the Financial Monitoring Service from the jurisdiction of the National Bank, which currently is an independent body, is not subject to any Agency and is accountable only to the Prime Minister. The service is engaged in the prevention of money laundering legalization and terrorism financing.