Statement Of The National Bank Of Georgia
12 May, 2020
The National Bank of Georgia (NBG), according to Georgian legislation, follows confidentiality rules and refrains from publicly discussing the matters between the organizations under its supervision and the NBG itself. Nevertheless, we consider it crucial to react to the incorrect facts and assessments made today by the Chief Executive Officer of JSC "Georgian Healthcare Group" on one of the TV channels.
Public is aware, that one of the goals of the National Bank is to promote stability and transparency of financial system and at the same time protect the rights of consumers and investors. The National Bank is also responsible for promoting competitive environment in the financial sector, controlling systemic risk and minimizing potential risks.
Rigorous and proper adherence to these goals and functions allowed the regulator to maintain financial sector stability even in the environment of pandemic and to ensure the appropriate protection of consumer and investor rights. During the decision-making process the National Bank of Georgia is in constant coordination with the financial sector and, to the extent possible, always takes into account existing circumstances and acts promptly within its mandate and legal authority.
The NBG is of the view that the health sector plays immense role in responding to the ongoing challenge. To demonstrate this, the NBG promptly implemented a temporary supervisory plan to help the financial sector respond to the challenges presented by the pandemic and to stimulate the economy. Nevertheless, we need to highlight, that a particular group’s attempt to seek preferential treatment of a specific business activity under the name of the anti-pandemic efforts is totally unacceptable to us.
Statements made by Mr. Gamkrelidze after the spread of COVID 19 makes us think that the Georgia Capital Group, which, apart from the Georgian Healthcare Group, owns the shares of the Bank of Georgia, Aldagi insurance company, m2 and many companies in other sectors (production of alcoholic beverages, hotels, restaurants, energy, etc.), tries to use the COVID-19 factor and to obtain more-than-permissible financing from the Georgian banking system through the violation of the applicable regulations. This, as stated above, increases the risks of the bank and its depositors. Moreover, it creates unfair competition among the banks.
The aim of the conflict of interest management and large risk exposures requirements is to ensure sustainable and stable functioning of the financial sector and the protection of the rights of depositors. Non-compliance or insufficient compliance of this mandate will negatively reflect not only on the stability of the financial sector, but also on trust of the investors towards us and, in general, on the country’s economic situation. The National Bank of Georgia will not let this happen.
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