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Francois Painchaud: Market Determines Banking Sector’s Size

The Georgian banking market concentration is moderate and optimal, Francois Painchaud, resident representative of International Monetary Fund (IMF) in Georgia, noted.

At his meeting with government officials and financiers, he noted that the number of commercial banks reflect the market necessities. The very market will regulate both enlargement and growth tendencies. Optimal quantity of commercial banks is not calculated proportionally to state economy and market size, he said.

As reported, several days ago representatives of several commercial banks noted that the Georgian banking sector should reduce the current quantity of commercial banks to 6-7 ones, instead of current 17 market players.

Georgia has well-capitalized banking market in the region and this factor stresses Georgia’s advantage in the Region, Francois Painchaud said.