New Mandate for Banks Could Impact Deposit Portfolio Pricing

Banks are now required to accumulate financial resources in a resolution fund to mitigate potential financial crises, according to Aleksandre Dzneladze, Chairman of the Banking Association. This announcement was made on the "Business Partner" program.

Dzneladze outlined that the move involves the creation of a fund that will facilitate the acquisition of funds and assist the resolution process should a crisis occur. This strategy is expected to contribute significantly towards assessing real financial stability.

According to Dzneladze, the National Bank is set to implement these changes starting from 2025, taking into consideration the current processes and timelines for fund collection.

"One of the immediate implications of this development will be its impact on the pricing of the deposit portfolio, leading to a potential decrease in interest rates," Dzneladze stated.

However, he added that it is uncertain whether this will affect loan products in a directly proportional manner. This is due to the fact that the accumulation of money is spread out over an extended period, implying that banks will contribute to the fund in minimal amounts over time.

Dzneladze reassured that, given the current circumstances, this new mandate is not expected to bring about drastic changes for consumers.