The opening of the first microbank is planned in Georgia

It will become a kind of bridge between microfinance organizations and traditional banks. This was announced by the acting head of the National Bank, Natia Turnava. She noted that according to the new license for microbanks, which came into force on July 1, there are already organizations ready to apply for it.

She also stressed that the introduction of a new license will attract new investors, creating a new and attractive financial institution that will help fill the gap between microfinance organizations and traditional banks.

What is a microbank?

Microbank is a new type of financial institution in Georgia. It can issue loans up to 1 million lari per person or group of people, as well as attract deposits and issue its cards for non-cash and cash payments. Micro-banks will be subject to the same security and privacy standards as regular banks.

To obtain a license, companies are required to provide documents on the basis, a certificate from a commercial bank on authorized and placed capital, as well as information on the origin of capital. The initial capital of the microbank should be 10 million lari. Companies must also provide information about their structure, past activities and compliance with management requirements.

These changes are expected to stimulate financial diversity and provide new opportunities for obtaining financial support for small and medium-sized businesses in Georgia.