During 2019-2021, National Bank of Georgia (NBG), with support from experts of the Polish Financial Supervisory Authority – UKNF (with assistance of Polish and Lithuanian central banks, Polish Bank Guarantee Fund and the Financial Ombudsman’s Bureau) extensively worked on supporting the Georgian banking and payment sector to come closer to EU standards as it is set out in the Association Agreement. This was done within the framework of EU-funded project “Strengthening the National Bank of Georgia capacity in the field of Banking and Payment services in line with the EU Standards”. The project assisted NBG in eliminating gaps between the EU and Georgian legislation in the banking and payment services and in approximating the local legislation with the EU law.
Polish and Lithuanian experts, together with Georgian counterparts examined drafts of laws regulating banking sector and payment services in Georgia and provided their revisions, comments and proposals of amendments to the existing framework based on their experience and best solutions adopted in Poland and Lithuania.
Upon the completion of the twinning project in 2021, relevant legislation will be approximated in accordance with the EU provisions, NBG will have improved financial supervisory mechanisms and enhanced institutional capacity in the field of banking and payment services. A better legislation, methodology and standards of supervision framework in Georgia, aligned with relevant EU law and practices, will allow a more efficient and secure application of supervisory power to better protect beneficiaries of banking and payment services and encourage financial market development in Georgia. Consequently a well-functioning financial markets in Georgia will contribute in long-term to economic growth, as well as overall security and stability of banking and payment services financial market participants.