Group of experts announced initiative on non-banking activities' restriction for the banks. The magazine brings comments of head of
Khechinashvili sees nothing alarming in holding of non-core assets by the banks at this stage. "What is we are worrying about – that the bank owns assets of, for example, insurance company, or that the bank uses it for harming the customers or to get competitive benefit", he asks, pointing that "The practice of joint holding of the banks and the insurance companies exists in the world, so there is not any problem in it".
In her turn, Eliava points that banks pack their non-banking activities in form of holdings, groups and similar legal entities. There is no definition in Georgian banking legislation regarding the nature and the rights of the holdings, she points and adds that this circumstance gives wide range of opportunity to implement non-banking activities.
Eliava considers that "growth of commercial banks' share in industrial, commercial or insurance sectors will not only restrict competitiveness in this field, but also represents serious risk of default of the bank itself". In order to solve this problem, Georgian banking legislation should be harmonized with European one, she declares.
As regarding position of banks themselves, than director general of "Sakartvelos Banki" (
In its turn, "
"We should not consider as non-core activities the exceptional cases when the bank tries to cover problematic loan. During this process, problematic assets may appear in temporary ownership, being intended for subsequent selling and payment of loan", the bank stated (the article was published on February 26).
Most Popular Stories
- Koch Brothers Step up Anti-Obamacare Campaign
- FDIC Sues Big Banks Over Rate Manipulation
- Vybz Kartel Convicted of Murder
- Is Malaysian Airlines Flight 370 in Andaman Sea?
- SoCalGas Reaches Record Spend on Diversity Suppliers
- FDIC Accuses Big Banks of Fraud, Conspiracy
- Stocks Close Lower Ahead of Crimea Vote
- U.S. Consumer Sentiment Falls in Early March
- Ulta Shares Look Good on Strong Q4
- Jittery Investors Dumping Russian Stocks