Finance

NBG has received ISO 27001 for the fourth time

The NBG noted that this achievement represents the fourth time the NBG has been awarded this prestigious certification.“For over a decade, the NBG has dedicated significant efforts to aligning with and enhancing international information security management standards. The institution places paramount importance on safeguarding the availability, confidentiality, and integrity of information,” reads the statement.“Ensuring information security on a global scale is a significant challenge today. As the manager of critical business systems, the National Bank of Georgia must implement secure business operations, which directly enhances the reliability of banking services,” stated Natia Turnava, Acting Governor of the National Bank of Georgia. “This year, the NBG successfully met the updated requirements of ISO/IEC 27001:2022. Compliance with this standard is crucial not only for the NBG as a central institution but also for the overall development of the financial sector.”The audit process involved both Georgian and international companies. The certification was issued by TÜV SÜD Management Service GmbH, a renowned German certification body.

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Banks 0.1X10 awaiting sanction

The Banking Association will study the arguments of the National Bank of Georgia on increasing the 3-point scale to 5 - how proportional are the new rates of 0.5% and 1% to assets, capital, threats, challenges, expectations...The National Bank of Georgia submitted a draft amendment to the penalty rules, which will add 0.5% and 1% to the 0.01%; 0.05%; 0.1% penalty rates, for discussion last week and will finalize it next week.The regulator cites a 15-year trend of 10.8-fold growth in banking sector assets (04/2009 – 8.3 billion; 09/2024 – 90 billion).However, it is noteworthy that the threshold increased in the meantime, in 2018, when the Responsible Lending Framework and a number of regulations came into effect, including the GEL 200,000 threshold for foreign currency lending, which has already been raised to GEL 400,000.According to financiers, a 10-fold increase in the sanction rate between 2018-2024 interval should not only follow the trend of asset growth. There are many other circumstances to consider, including the banks' own funds in financial indicators and the increased cost of resources.In addition, since the last change, when the maximum limit was raised to 0.1%, only 6 years have passed, not 15. Assets have also increased 2.6 times compared to 2028 (04/2018 – GEL 34.3 billion), not 10 times. As of 09/2024, the chartered capital of the banking sector is 13.3 billion GEL.According to the current rules, which were updated in April 2018, for failure to comply with the requirements (restriction, limit, prohibition...), the bank is fined 0.01%, 0.05%, 0.1% of the regulatory capital (how much it has at the time of violation), not less than GEL 20,000, and the maximum is exceeded.In addition, the revised rule also sets fixed fines, which have increased compared to the previous one, 2009. These include 5,000 GEL for violation of reporting rules, 10,000 GEL (for each case) for failure to submit documents related to bank administrators. 20,000 GEL for repeated violations and 50,000 GEL for multiple violations.(See: 10, 81, 82) Source: BRGAccording to the draft amendment to the rule for determining monetary fines for commercial banks and their administrators, the maximum 1% limit is not a ceiling. Under the current rule, a bank paying a maximum of 0.1% will have to pay each time if it violates it again.To make it more impressive, the new draft tariffs will see the largest capital TBC Bank pay 65 million if a 1% sanction is imposed, and the smallest - Silk Bank - half a million.The draft amendments mention the harmonization with EU legislation in the explanatory memorandum and refer to the document within the framework of the relevant EU legal regulation, namely Directive 2013/36/EU of 26 June 2013 on the prudential regulation of credit institutions (CRD).Previously, harmonization was also announced in the area of transparency. The supervisor intends to fully disclose information on fines in the future, just as it has already done on AML violations.

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Basisbank Increases Interest Rates On Savings

The bank says that the effective rate is 10.96%. According to their explanation, this means that the annual interest rate for the first 3 months is calculated at 10.95%, and for the remaining 9 months at 10.96%. The nominal rate in USD is 3.5%, and the effective rate is 3.51%, while in EUR - 2% and 2.01% respectively.The previous adjustment was noted in August when the interest rate on GEL increased to 10.62%. The USD/EUR rates are similar to those of the depositors.Basisbank, with a 4.02% share of the individual deposit portfolio, is represented in the TOP-4, along with systemic banks (H1/2024 – 4.2%).It has a 4.03% (H1/2024- 4.72%) share in total non-bank deposits and a market share of 4.06% in deposits from legal entities.As of Q3/2024, Hualing Group Bank had GEL 2.1 billion in deposits from individuals and legal entities (current, demand and term deposits).

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Registration has been canceled to another business entity

The decree is signed by Merab Shalikashvili, Head of the Non-Banking Institutions Supervision Department of the National Bank of Georgia.The owner and director of the booth is Jordanian Rebhi Jasser Rajeh Eltaria.The regulator has revoked the registration of a total of 17 currency exchange booths this year. None have been fined. In May-June 2023, more than 100 booths have been sanctioned with fines of up to 400,000 GEL.Basically, fines of 3,000 GEL have been issued for improper internal control and monitoring. Internal control at currency exchange points failed to meet the objectives of preventing the legalization of illegal income and the financing of terrorism.In addition, violations of the requirements of the registration and regulation rules were noted. More than 10 facts of providing services without verification were identified.It turned out that the software (electronic) system of the currency exchange booth failed to ensure the detection of suspicious signs and also the verification of individuals in the lists of politically active and/or sanctioned persons provided for by UN Security Council resolutions.As representatives of the fined LLCs told GBC, the NBG in most cases required training for cashiers. The function of a cashier should not be limited to identification, verification/conversion only.Several cases of fines were for violating the deadline for registration with the Financial Monitoring Service, which the entity is required to do within 10 days. Gambling business and legal activities are considered high-risk clients.

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Liberty's interest rate is the highest on deposits in USD

However, there has been a decline since the beginning of the year, which is partly related to global processes and the withdrawal from tight monetary policy. With the latest changes by the US Federal Reserve, the key rate has been reduced to 4.5%/4.75%.The Georgian market is not synchronous with the global trend, but it follows the direction.At the moment (11.11.2024), Liberty has the highest yield on deposits denominated in US dollars. "Basisbank" offers the highest interest rate to depositors in GEL.In addition, there is a promotion campaign in several banks. The yield on deposits opened through the Internet bank at the Bank of Georgia is +0.25%. There is a +1% bonus promotion in "ProCredit", when transferring from another bank, 1% is added to the deposit interest - maybe more, as the applications are considered individually.Tera Bank has also started a +1% campaign on foreign currency deposits since August and on GEL deposits since October 22.This week, "Basisbank" increased the interest rate, for 1 year (withdrawal at the end of the term) it is 10.95%.Residents and non-residents can place deposits mainly in 3 currencies, GEL, USD and EUR. British pounds are placed in the Bank of Georgia and TBC.The largest number of deposits (current, demand deposits and term deposits) of legal entities and individuals is in systemic banks.Banks By Interest Rate On One-Year Deposits

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Georgian companies showed solid growth on the London Stock Exchange

Bank of Georgia Group (BGEO LN) shares closed at GBP 45.75/share (+7.39% w/w and +23.48% m/m). More than 364k shares traded in the range of GBP 42.05 - 47.30/share. Average daily traded volume was 92k in the last 4 weeks. The volume of BGEO shares traded was at 0.82% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 30.60/share (+9.09% w/w and +22.16% m/m). More than 479k shares changed hands in the range of GBP 27.95 - 31.40/share. Average daily traded volume was 93k in the last 4 weeks. The volume of TBCG shares traded was at 0.86% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 11.40/share (+8.78% w/w and +18.87% m/m). More than 364k shares traded in the range of GBP 10.40 - 11.56/share. Average daily traded volume was 118k in the last 4 weeks. The volume of CGEO shares traded was at 0.85% of its capitalization.

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Basis Bank has the highest deposit ratio in GEL

The Georgian market is not synchronous with the global trend, but it follows the direction.At the moment (11.11.2024), Liberty has the highest yield on a deposit denominated in USD. "Basisbank" offers the depositor the highest interest in GEL.In addition, there is an increase campaign in several banks. The benefit of a deposit opened with Internet banking in the Bank of Georgia is +0.25%. +1% increase promotion is "in Procredit, when transferring from another bank, 1% is added to the benefit of the deposit. Maybe more. Applications are considered individually.Tera Bank also started +1% campaign on foreign currency from August and on GEL deposits from October 22."Basisbank" has increased the interest rate this week, it is 10.95% for 1 year (subject to withdrawal at the end of the term).Residents and non-residents can make a deposit in 3 currencies, GEL, USD and EUR. It is placed in the Bank of Georgia and TBC in British pounds.The largest number of deposits of legal entities and individuals (current, demand deposits and current accounts) are in system banks.-11.11.2024- (%)

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Banks have increased the interest rate on deposits

At the same time, the interest rate on term deposits in GEL increased by 0.5 percentage points to 10.8%.Interest rates on USD and EUR deposits also increased by 0.4 and 0.2 percentage points to 2.6% and 1.4%, respectively.In September, the average weighted annual interest rate on deposits denominated in national currency (excluding government deposits) increased by 0.1 pp to 7.4%. On deposits placed in foreign currency by 0.3% to 1.9%.Deposits in the banking sector (current, demand, term, excluding bank and government deposits (5.2 billion)), as of 1.10.2024, are 52.4 billion GEL. Among them, 22.2 billion GEL is on time deposit accounts.In total, the sector has attracted 10.7 billion GEL from non-residents. Of this, 8.5 billion comes from retail stores. There are 2.8 billion GEL in the current accounts of physical and legal entities of other countries, more than ½, up to 1.5 billion GEL are in the accounts of companies.

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TBC's Share In Lending Has Increased To 39% - Rating

The banking sector as a whole maintains the lending growth at 18.8% year-on-year (Y.Y) (excluding the effect of exchange rate changes) and amounts to 59 billion GEL.TBC Bank has invested the most in the economy of Georgia. The credit portfolio of systemic Bank exceeds 23 billion.Bank’s Rating By Lending For 3Q24:

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The Ministry of Finance sold GEL 50 MLN 3.2-year bonds on November 5

Total demand was 1.4x higher and the weighted average yield was fixed at 8.317%, down by 0.034ppts from previous auction held in Sep-24. 6-month GEL 20.0mn (US$ 7.3mn) T-bills were sold at the auction held at NBG on November 5, 2024.Total demand was 1.5x higher and the weighted average yield was fixed at 7.810%, up by 0.020ppts from previous auction held in Sep-24. The nearest treasury security auction is scheduled for November 12, 2024, where GEL 20.0mn nominal value 1-year T-bills and GEL 30.0mn nominal value 10-year Benchmark Bonds will be sold.

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NBG has received ISO 27001 for the fourth time

1732180949 • Finance

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Basis Bank has the highest deposit ratio in GEL

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Abkhazian separatist government faces threat of "coup d'état"

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Registration has been canceled to another business entity

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TBC's Share In Lending Has Increased To 39% - Rating

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Politics

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EU's Borrell urges action on Georgia, proposes EUR 100 MLN funding shi...

“So we’ll take this money, about 100 million, and give the money to civil society organizations in order to support them in their fight for a fair election. The people of Georgia will be continuously supported by the European Union. The process of accession is being put on hold, it is stopped until the Georgian government gets back on track. To go back to the track, a lot of things have to change. And in the meantime, we will use the money that was allocated to the government for the people who are fighting for their freedom,” he stated.Borrell also called for a thorough investigation into allegations of election irregularities, stressing the importance of accountability.“Certainly, there have to be investigations. What has happened has to be fully assessed. You cannot say that the elections were not free and fair and not investigate that. We started, since the beginning, asking the government to clarify everything related to the complaints of the people. So, obviously, it has to be an investigation and it has to be the accountability,” he added.The European Union Foreign Affairs Council is meeting in Brussels.

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Abkhazian separatist government faces threat of "coup d'état"

In Sukhumi, Moscow is increasingly being criticized for its pressure on Abkhazia. The “deputies” of the so-called parliament of the unrecognized republic, Eric Rshtuni, Kan Kvarchia, Naur Narmania and Demur Gogia, announced at a meeting with the public at the Atrium Victoria Hotel in Sukhumi on November 13 that they will vote against the so-called investment agreement.In addition, in the first half of 2025, the so-called Presidential elections are due to be held.According to experts, if the so-called government and its opposition do not reach any compromise in the near future, the protests could escalate into a “coup d’état.”Meanwhile, the electricity supply in Abkhazia has been cut by another hour.As a result of the 2008 Russian-Georgian war, the Kremlin’s armed forces occupied Abkhazia and the Tskhinvali region. As a result, tens of thousands of Georgian citizens became displaced. Later, the Kremlin declared the occupied regions independent entities. Russian armed forces still control these two regions of Georgia.

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Georgian President discusses “political crisis” in country with Europe...

The meeting came after Michael Roth, the Chair of the Foreign Relations Committee of the German Bundestag, last week announced his counterparts from Finland, Sweden, France, Lithuania, Latvia, Estonia, Poland and Germany would visit Georgia to discuss the latest developments in the country.In her remarks following the meeting, Zourabichvili said the crisis in the country was “evident”, and further pointed out that “our friends are here to see the ways Georgia can get out of this crisis”, in reference to the results of the elections the domestic opposition had rejected to recognise.“This is a country where the public is really European, democratic, [but], unfortunately, [also one] which does not have a democratic Government - [it] has a one-party Government that has taken over [...] the institutions of this country”, the President claimed.“This is a single-party-managed and single-party-rigged election. That is why we are entering a crisis”, she continued.Zourabichvili further added the country “should receive a legitimate Parliament, a legitimate Government and a legitimate new President”, adding that “our path is the path of stability, democracy and Europe, [and] there is no other path for Georgia”.In his turn, Roth called for an “independent investigation” into the alleged election irregularities.“I have already expressed my serious doubts about the legitimacy of the elections. It is quite clear that the suspicions are so serious that we are calling for an independent investigation. This is the only chance to restore trust. Without an independent investigation, we cannot accept the results of this election”, the German official said.Earlier today, Shalva Papuashvili, the Speaker of the Georgian Parliament, said he had declined a meeting with a delegation of parliamentarians from European Union member states, led by Lithuanian MP Žygimantas Pavilionis, citing “unfriendly rhetoric” to the ruling Georgian Dream party by specific members of the delegation, and their “sowing of chaos” in the country through their alleged backing of the “radical opposition in the name of the EU”.

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Coalition for Change youth rally near Orbeliani Palace, President meet...

Simultaneously, a protest organized by the youth organization Coalition for Change is taking place nearby, joined by representatives of the movement ‘Daitove’.The demonstrators aim to communicate their demand to European partners for new elections in Georgia, a call they have voiced repeatedly in recent days.

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Trump is back to the White House

His competitor Kamala Harris from the "Democratic" party received 226 votes of the Electoral College.Trump will become the first president to return to the White House since 1892.