The National Bank of Georgia has developed additional requirements for banks as part of its efforts to promote transparency between banks and electronic platforms and healthy competition. The NBG is pleased to offer a draft of amendments to the Regulation on the Management of the Conflict of Interests to the stakeholders for consultation.

 

According to the amendment, the platform is an electronic platform which provides online intermediation services to third parties. To ensure transparency of cooperation with such intermediary platforms, banks will be required to publish an offer for cooperation with them (Invitation to an Offer) for at least 30 days and to select desired partners in a transparent manner. The obligation to publish the Invitation to an Offer will also apply if the bank, within the legally permitted activities, acts as an intermediary platform for a third party.

 

The draft specifies that the terms of the Invitation to an Offer shall not contradict the requirements defined by the Law of Georgia “On Competition”. Also, the terms should allow for potential cooperation with a wide range of candidates and should follow the “arm’s length” principle.

 

The requirements set out in the draft amendment will only apply to banks of systemic importance and those banks whose group includes one or more platforms or other such entity(ies) whom the bank offers to provide online intermediary services. Upon the request of the NBG, the said requirements may also apply to the bank that has a dominant position on a market of certain services.

 

The requirements were developed with the involvement of World Bank experts andthe NBG aims to promote the openness of ecosystems and sound competition in the markets concerned.

 

Detailed information about the project is available at the following link. Proposals, comments and questions related to the project can be sent to: policy@nbg.gov.ge  before August 10, 2022.