Development of the Banking Sector in Georgia

Simon Gelaschwili and Andreas Nastansky

No 36, Statistische Diskussionsbeiträge from Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät

Abstract: The authors’ outline of the evolution of the banking sector development assesses governmental approaches to bank regulation and supervision and is a basic regulatory frame-work, needed to reduce bank failures; it characterises steps of the evolution of the banking sector and trends of its development. The discussion focuses on: 1. Initial forming and restructuring of the banks, changes in the commercial banking sector and the reorganising of the banking systems; 2. Change of the role of the national bank and the mode of its intervention; 3. Dynamics of the banking system development in Georgia and the risks of banking activities. The main findings suggest that 1. The Georgian banks overcame the crisis of the 90’s because of having portfolios of assets in foreign currencies and performing of the national banks function in the “lender of last resort”; 2. Regulatory and supervisory practices in Georgia develop from strict regulations to a deregulation that is most effective in promoting good performance and stability in the banking sector; 3. Alongside with the increase of banking concentration and openness the banking competition and financial risks boost too; that could be managed by further development of institutional reforms in the banking sector. There is an assess of the development and weakness of the banking sector.

Keywords: banking sector; banking supervision; financial risks (search for similar items in EconPapers)
Date: 2009-12
New Economics Papers: this item is included in nep-his
References: Add references at CitEc
Citations:

Downloads: (external link)
http://nbn-resolving.de/urn:nbn:de:kobv:517-opus-40216 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pot:statdp:36

Access Statistics for this paper

More papers in Statistische Diskussionsbeiträge from Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät Contact information at EDIRC.
Bibliographic data for series maintained by Marco Winkler ().