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Law of Georgia on Activities of Commercial Banks

How are commercial banks regulated in Georgia?
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This document presents the law that governs the operations of commercial banks in Georgia. The law is divided into eight chapters that address:

  • General provisions of the law and the scope of operations of the law;
  • Licensing, describing;
    • The procedure for applying for a banking license;
    • The decision to grant a license, its conditions and causes for its revocation.
  • Ownership and administration of banks, including:
    • Standard requirements on capital and reserves;
    • Restrictions on ownership and structure of assets.
    • Bank mergers;
    • Managing bodies of commercial banks;
    • Audit committee, internal controls and banking confidentiality.
  • Operational requirements, outlining:
    • General banking principles;
    • Prudential standards and limits;
    • Prohibited transactions and practices.
  • Peculiarities concerning disputes about certain activities of commercial banks, such as:
    • Disputes on realization of property that is pledged as collateral.
  • Accounts, audit, reporting and inspections, including:
    • Accounts and financial statements;
    • External audits;
    • Reports and inspections.
  • Infractions and penalties;
  • Temporary administration and liquidation, including:
    • Decision ordering appointment of the temporary administration;
    • Effects of temporary administration, its cessation and liquidation.

It concludes by listing transitional provisions, such as acting banks' licenses.

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