Kakha Kiknavelidze, new director general of Bank of Georgia, says that the National Bank of Georgia should maintain bank sector supervisory functions.
In his interview with Forbes Georgia, Kiknavelidze noted that international tendency suggests to assign supervisory functions to a central bank and European Central Bank is the best sample, he said.
“The national bank has constitutional obligation to ensure the bank sector stability and it is logical that supervisory function remains at NBG. I am happy that this has happened”, Kiknavelidze said.
The Georgian bank sector has made considerable progress over the past 10-15 years and both commercial banks and the regulator have contributed to this process, Kiknavelidze said.
The Georgian bank sector’s stability should be exemplar in the region and many developed countries. The Georgian bank sector has withstood the 2008 currency crisis amid the Russia-Georgia hostilities painlessly, in practice. Our country comparatively easier withstood the currency crisis compared to our neighboring countries. Our bank sector is quite stable and this is merit of both commercial banks and the regulator”, Kiknavelidze noted.