The licensing of financial institutions in Georgia falls within the competence of the National Bank. It is important to know from the outset: the detailed conditions for a specific institution type's license — the minimum capital, the application form, the requirements for shareholders — are set out in separate sectoral laws, and the basis of this page is the framework norms of the organic law on the National Bank: definitions, the supervisory body, and supervisory powers.
Representatives of the Financial Sector
The law reflects the representatives of the financial sector in a single list: commercial bank, microbank, non-bank deposit-taking institution, brokerage company, independent registrar of securities, central depository, specialized depository, stock exchange, investment fund, asset management company, microfinance organization, payment system operator, payment service provider, accountable enterprise, and currency exchange point. From 1 January 2027 the list will be supplemented with a securitization special purpose entity, a factoring company, and a factoring platform.
By definition, a commercial bank is a legal entity licensed by the National Bank that takes deposits and, using them, carries out in its own name the banking activity defined by Georgian legislation. A microbank is a legal entity established in the legal form of a joint-stock company and licensed by the National Bank. The financial sector is precisely the totality of these representatives.
The Financial Sector Supervision Committee
The President of the National Bank creates, by order, the Financial Sector Supervision Committee of the National Bank. The members of the committee are the President of the National Bank, the relevant vice-president, and the heads of the relevant structural units of the National Bank. By the President's decision, the members may also include other employees of the National Bank and invited persons.
This structure means that the strategic issues of sector supervision are decided precisely in this collegiate body — with the participation of the National Bank's leadership and the responsible units.
Banking Supervision and Sanctions
The National Bank is entitled to supervise the activity of commercial banks, microbanks, and non-bank deposit-taking institutions. Supervision includes the issuance and cancellation of licenses — including a conditional license for a commercial bank — inspection and regulation, the issuance of written instructions, the imposition of additional requirements and restrictions, and the application of supervisory measures and sanctions.
The Bank may require information on the sources of the origin of capital and on the direct and beneficial owners of a significant share, conduct audits, and inspect subsidiary enterprises as well. Among the sanctions are an increase in mandatory reserve norms, suspension of active operations, prohibition of profit distribution and dividends, and a demand for additional capital; for administrators — suspension of the right of signature, a monetary fine, and a demand for dismissal; for the institution — a monetary fine and cancellation of the license. The amount and imposition procedure of the monetary fine are determined by a normative act, and the fine is directed to the state budget.
The National Bank also determines the minimum amount of capital; a commercial bank, microbank, or non-bank deposit-taking institution may be declared insolvent or bankrupt only by a decision of the National Bank; the temporary administrator and liquidator are appointed by the National Bank. Where a conditional consent is given to the appointment of an administrator, the deadline for the complete submission of documentation is no more than 6 months. Supervision is carried out on the basis of a risk-based approach.
Supervision of the Securities Market
The National Bank is entitled to regulate the relations arising when issuers issue securities and put them into circulation, as well as matters connected with the ownership of securities, and to ensure the prevention, detection, and suppression of violations in this sphere. It issues and cancels the licenses of regulated participants of the securities market, sets their minimum capital requirements, and approves the emission prospectus.
Alongside monitoring, inspection, and investigation of the activity of market participants, the National Bank is entitled, in case of a suspected violation or a threat to investors' interests, to require and receive an explanation from any person in writing or orally. Among the sanctions is a monetary fine as well, whose amount and imposition procedure are determined by a normative act of the National Bank, and the amount is directed to the state budget.
The Credit Information Bureau and Loan-Giving Entities
The National Bank also supervises the activity of the credit information bureau: an enterprise intending to carry out the bureau's activity must register with the National Bank, and loan-giving organizations are obliged to provide the bureau with information on loans.
The activity of loan-giving entities is regulated separately: such an entity undergoes registration with the National Bank, though this obligation does not extend to a representative of the financial sector or to loans issued by an enterprise to its own partner, shareholder, or employee. The law defines a loan-giving entity as a person or a group of connected persons with respect to which more than 20 individuals simultaneously have a loan or credit obligation. A loan-giver is obliged to observe the confidentiality of information: information about a borrower is given to third persons only by a court decision or with the borrower's prior written consent.
What This Means for Licensing
If you intend to start an activity with the status of a representative of the financial sector, you must first determine the exact type of your institution — from the law's list — and then apply to the National Bank for the relevant license. The detailed requirements for the application are established according to the institution type, so consulting the sectoral laws in advance is necessary.