The Statement of the National Bank of Georgia

The Statement of the National Bank of Georgia

14 February, 2019
The National Bank of Georgia is committed to the stability of the financial sector with a high responsibility. The supervision of commercial banks is conducted in full compliance with the best international standards.

At the meeting of the Committee of Supervision of Financial Sector which was held on February 13, 2019, the NBG made a decision to suspend the signature rights of the head and the deputy head of Supervisory Board of TBC Bank. At the same time, the two month term has been given to the General Meeting of Shareholders of the Bank to dismiss the aforementioned administrators from the Supervisory Board. It should be noted that the decision does not concern any bank shares owned by the aforementioned persons.

The decision is based on facts of violating the certain regulatory norms and requirements set by the legislation regulating conflicts of interests issues. The identified infringements that were detected through the inspection conducted by NBG, are linked to the transactions that took place in 2007-2008. As a result of the inspection, the violation by the head and the deputy head of the Supervisory Board of certain norms and requirements regulating conflicts of interests has been revealed.

The National Bank highlights that TBC Bank, with its executive management, is one of the leading financial organizations both in the country and in the region. The TBC Bank is financially stable and robust credit institution and it fully satisfies existing economic limits and norms. Herein, we note that the supervisory decision of the National Bank does not in any way target the Bank itself.

TBC Bank is a public company listed on the premium segment of London Stock Exchange. It should be noted that NBG supervisory measures will largely enhance the quality of corporate governance of the Bank, which should facilitate the further development of the Bank and increase its attractiveness to potential investors.