Georgia: Technical Assistance Report—Strengthening Regulation, Supervision, and Oversight of Micro Lending Institutions
IMF Staff Country Reports, September 3, 2020
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- Georgia: Technical Assistance Report—Strengthening Regulation, Supervision, and Oversight of Micro Lending Institutions
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Bibliographic details
- Published: September 3, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513556406.002
Summary
- In the past two years, the NBG has adopted a series of measures to strengthen nonbank sector financial regulation, supervision, and oversight.
- The MCM TA mission in 2017 provided recommendations along these lines, most of which have been implemented by the NBG.
- The nonbank sector currently consists of Micro Financial Institutions (MFIs) and Loan Issuing Entities (LIEs).
- These new measures have helped to enhance the resilience of the nonbank sector, weed out those that are non-viable, and improved the reputation of the MFI brand.
Key reforms and regulatory actions
- Amended laws and issued new and revised regulations on registration, capital, and liquidity requirements for MFIs.
- Significantly expanded supervisory powers and authorities for the nonbank sector.
- Increased supervisory resources for the nonbank sector.
- Registered 200 LIEs.
- Put in place consumer protection and responsibility lending rules.
Findings and implications
- Strengthened legal and regulatory framework for MFIs, covering registration, capital, and liquidity.
- Enhanced supervisory capacity through expanded powers and additional resources.
- Formal registration of 200 LIEs as part of sector reform and oversight.
- Consumer protection and responsible lending frameworks intended to improve market conduct and borrower outcomes.
- Overall impact: improved sector resilience, removal of non-viable entities, and enhanced MFI reputation.
Publication metadata and identifiers
- Publication title: Georgia: Technical Assistance Report—Strengthening Regulation, Supervision, and Oversight of Micro Lending Institutions
- Publication date: September 3, 2020
- Series: Country Report No. 2020/273
- Volume: 2020
- Issue: 273
- Pages: 36
- DOI: https://doi.org/10.5089/9781513556406.002
- Stock No: 1GEOEA2020005
- ISBN: 9781513556406
- ISSN: 1934-7685
- Subject tags: Banking, Capital adequacy requirements, Commercial banks, Deposit insurance, Economic sectors, Financial crises, Financial institutions, Financial regulation and supervision, Loans, Small and medium enterprises
International Monetary Fund. Monetary and Capital Markets Department "Georgia: Technical Assistance Report—Strengthening Regulation, Supervision, and Oversight of Micro Lending Institutions", IMF Staff Country Reports 2020, 273 (2020).
Content in this bundle
- Preface and Executive Summary — IMF TA Mission to Georgia