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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