The law “about National bank” is to be amended. According to the
amendments, new type of financial sector representative – qualified credit
institution – will start working, which will be controlled by the National
bank.
As said in the amendments presented in the Parliament, the mentioned
qualified institute will be a legal entity, which will attract funds from more
than four hundred individuals or fund amounts attracted by which will be more
than five million GELs.
As said in the bill, in case of National Bank’s request, such an
entity will be obligated to register and meet the requirements established by
the National Bank.
According to the project, the National Bank will be able to register a
qualified credit institution, as well as, cancel its registration; also, it
will establish for them proper criteria, risk disclosure, minimal capital,
liquidity and additional requirements, it will check, set up restrictions and
sanctions.
However, if the funds attracted by a qualified credit institution
exceed the limits set by the National Bank, the Bank of Georgia will be able to
require from it obtaining banking licenses.
If the National Bank deems that activities of a qualified credit
institution endangers the stability of the financial sector or funds attracted
from individuals, the National bank will be entitled to request from a
qualified credit institution to stop fund raising and lending-related
activities. Otherwise, the financial institution will be charged. The money
received from penalties goes to the state budget.
In addition, for the implementation of the regulatory functions, the
National Bank will be entitled to require and receive any information from
qualified credit institutions according to its own competence. However, if such
an entity does not meet the requirements of the National Bank, it will be fined
with liquidation and 150 000 GEL.
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