Banking

Deposits Obligatory Insurance Project brings More Benefits when compared to Extra Costs

Deposits Obligatory Insurance Project brings More Benefits when compared to Extra Costs May 10, 2018Leave a comment
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\”Banking sector will receive more benefits in comparison with extra costs\”, Archil Mestvirishvili, vice chairman of National Bank of Georgia (NBG) noted concerning deposits obligatory insurance system introduction.

The private sector thinks that banking sector will need to take higher costs because of deposits insurance obligatory program, about 15-20 million GEL 12 months. The software bring more benefits to the lending company sector compared to extra costs, Mestvirishvili said.

\”Commercial banks may believe that they\’ll have to have additional expenditures, but they notice that the rewards are often more than additional expenditures. Conversely, this system means especially small depositors? which is additional insurance and safety on their behalf. In many instances safety aspects will prevail over adjustments in interest rates\”, Archil Mestvirishvili said.

Government has approved legislative amendments for introduction of deposits obligatory insurance system and forwarded the document into the Parliament.

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