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archil_mestvirishvili

Deposits Obligatory Insurance Project will Bring More Benefits compared to Extra Costs

“Banking sector will receive more benefits compared to extra costs”, Archil Mestvirishvili, vice president of National Bank of Georgia (NBG) noted concerning deposits obligatory insurance system introduction.

The private sector thinks that banking sector will have to take higher costs because of deposits insurance obligatory program, about 15-20 million GEL a year. This system will bring more benefits to the bank sector compared to extra costs, Mestvirishvili said.

“Commercial banks may think that they will have to take additional expenditures, but they will see that the benefits will be more than additional expenditures. On the other hand, this program refers to especially small depositors  and this is additional insurance and safety for them. In most cases safety aspects will prevail over changes in interest rates”, Archil Mestvirishvili said.

Government has approved legislative amendments for introduction of deposits obligatory insurance system and forwarded the document to the Parliament.