The new banking regulations did require effect on November 1. The announced regulations will be simplified and currently, technical details are being specified, the National Bank of Georgia (NBG) noted.
The new regulations will be enforced no later than November 15.
“Over the past week active consultations were held over the retail crediting draft provision at the NBG with representatives of the finance sector, experts along with the field specialists.
The working version of the revised provision reflects almost all key technical remarks outlined by the NBG. Simultaneously, key principles with the regulation remain unchanged. Now, consultations proceed for specification and simplification of distinct articles and paragraphs. Considering that the document was put through essential technical changes, the revised document will be submitted towards the finance organizations as soon as possible. At the exact same time, finance organisations will be presented with several days for checking amendments and adjusting their own inhouse procedures for the new regulations“, the NBG statement reads.
The NBG is not going to unveil what circumstances have inspired the NBG to postpone an enforcement of the new regulations, how the new regulations will likely be simplified and if thez banking sector was involved within the process.
Aleksandre Dzneladze, head from the Association of Banks, says that there are multi-faceted reasons behind the mentioned postponement. Comprehensive information was supplied to the NBG, economic team of the Government and all sorts of parties about negative impact of latest regulations, he added.
“In truth, continuous working process was carried out by the National Bank, the parliament‘s committee for finance and budget issues and the Business Ombudsman. We have discussed the existing expectations and how the enforcement of the first edition of the regulations would influence economy and crediting portfolio. It turned out to be that the real results would be essentially different in the NBG expectations“, Dzneladze noted.
As to the way the regulations is going to be simplified, Dzneladze noted that it is untimely to share this. It is vital that consultations continue and both commercial banks and Association of Bank have engaged in the procedure.
In reaction to the question, whether the postponement signifies that the government and NBG sometimes make concession, Dzneladze pointed out how the NBG has gotten significant decision regarding this business sector. “Consultations are going to be continued and the functional process i will unveil additional details“, Dzneladze said.
The president of Association of Banks could not specify for how long the banking regulations could well be postponed.
Roman Kakulia, head of the parliament‘s sectoral economy committee, doesn’t have information which articles will likely be specified and simplified from the NBG, but he expressed suppositions that the new regulations were postponed based on the business sector‘s remarks.