Legal acts will be amended to improve the operating environment of the lending entities. The two-year supervision process identified some deficiencies in the companies' operational risk management, which made it necessary to develop uniform standards. This will help reduce operational risks for lending entities, keep the sector running smoothly and project a better image and reputation of these entities in the market.

The legal document regulating the operation of the lending entities will be amended to incorporate the standards and requirements related to operational risks.

The update mainly involves the imposition of requirements on software, accounting software and subsequent processes. For secured loans, the standards will be set for treatment and storage of the collateral (jewelry, equipment, etc.).

The package of planned enhancement also includes a series of requirements, set out in provisions and regulations, to apply to administrators and beneficiaries, and clauses regarding security systems for both lending entities and currency exchange bureaus.

Interested parties are welcome to share suggestions, comments and questions regarding the draft legal acts by June 10, 2021, to the following e-mail address: LE@nbg.gov.ge