The “AYFB”: separation of the Banking Supervision Department from the National Bank will make the banking sector more transparent and diversified

The “Association of Young Financiers and Businessmen - AYFB”, states it’s attitude towards the amendments to be done to the Law of Georgia on Activities of Commercial Banks.

According to the draft law, the Banking Supervision Department should be separated from the National Bank and become an independent Legal Entity of Public Law, aiming at the effective supervision of the country’s financial sector.

The Vice-president of the “AYFB”, Shota Gulbani, has talked regarding the mentioned issue, at the information agency “Reportiori” press-club.

According to him, separation of the Banking Supervision Department from the National Bank and in compliance with the new amendments, composition of it’s managing body, the supervisory council, by the Parliament and the appointment of the Head of the Council by the Chairman, will significantly contribute to the promotion of the banking sector supervision on behalf of the legislative power of the country and in general will increase the sector’s diversity and transparency.
„Accordingly, increased transparency will virtually leave no place for manipulations and speculative deals, that might supposedly have place in this sector. The questions of such manipulations have been raised, particularly in connection with the national currency devaluation, while the fundamental factors, causing devaluation have been exhausted but GEL devaluation still continued. We believe, that Banking Supervision Department’s separation from the National Bank, will not hamper effective functioning of the commercial banks, as far as, in this case, the Parliament will approve the Financial Supervision Agency Council and this LEPL itself will be still subordinated to the National Bank of Georgia” – announced Shota Gulbani.

The organization considers, that while talking about the reasons of the devaluation of the national currency, the National Bank and the Government more and more frequently accuse each other. In such circumstances, the Parliament’s demand to compose the Financial Supervision Agency Council, is quite legitimate and will exclude similar insinuations in the future.