How to Stop Political Speculations?
Nato Khaindrava, a Cartu Bank deputy director general: “Separation of the supervisory functions from the NBG will put an end to mutual accusations the NBG and the Government are making against each other. Indeed, this is not a positive message to millions of clients, who stand behind these commercial banks, whose cooperation with commercial banks guarantee their stability. Therefore, the confidence in the bank sector must be significant.
It is important that the supervisory functions be separated from the NBG, because the conflict of interests is manifest. The NBG function is to determine the monetary policy. The NBG’s access to the regulatory norms grows risks of use of these instruments without purpose. It is clear the structure has been politicized and the supervisory agency must be liberated from this burden to maximally ensure its independence.
As reported, for many years the NBG has used the supervisory instrument without purpose. As a result, several commercial banks are facing problems with liquidity; depositors have withdrawn a significant volume of money. Without timely prevention measures, commercial banks were led to bankruptcy conditions. The financial supervision, as the financial sector’s regulatory body, should independently implement the activities. Moreover, this precedent existed several years ago and it was discussed without noise.