Law of Georgia on Activities of Commercial Banks

This document presents the law that governs the operations of commercial banks in Georgia. The law is divided into eight chapters that address:

• General provisions of the law and the scope of operations of the law;
• Licensing, describing;
  • The procedure for applying for a banking license;
  • The decision to grant a license, its conditions and causes for its revocation.
• Ownership and administration of banks, including:
  • Standard requirements on capital and reserves;
  • Restrictions on ownership and structure of assets.
  • Bank mergers;
  • Managing bodies of commercial banks;
  • Audit committee, internal controls and banking confidentiality.
• Operational requirements, outlining:
  • General banking principles;
  • Prudential standards and limits;
  • Prohibited transactions and practices.
• Peculiarities concerning disputes about certain activities of commercial banks, such as:
  • Disputes on realization of property that is pledged as collateral.
• Accounts, audit, reporting and inspections, including:
  • Accounts and financial statements;
  • External audits;
  • Reports and inspections.
• Infractions and penalties;
• Temporary administration and liquidation, including:
  • Decision ordering appointment of the temporary administration;
  • Effects of temporary administration, its cessation and liquidation.

It concludes by listing transitional provisions, such as acting banks' licenses.