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Koba Gvenetadze: Extra Regulations Might Increase Financial Risks

Second Phase of Stripping Commercial Banks of Noncore Assets Underway

National Bank of Georgia (NBG) plans to broaden supervisory range. The NBG president has announced the second phase of separating noncore assets from commercial banks in Kutaisi.

Details of the second stage will be unveiled soon after the bill will be developed by NBG, Koba Gvenetadze said.

Gvenetadze has not specified whether the bill has been agreed with the banking sector. He noted that changes will be discussed with the industry representatives, but he has not specified the field – housing, hospital, pharmaceutical or energy sectors. In the mentioned sectors commercial banks or their subsidirries hold assets.

We remind yhou that commercial banks were banned to hold noncrore assets in October 2014. The deadline for meeting new standards was the 31st of December, 2015.