The importance of management for successful implementation of the reform

Tsiuri Okruashvili, Mate Gudushauri

Georgia’s inclusion in world economic process, construction and development of the independent state, successful implementation of economic, social and political programs is impossible without the creation of a solid banking system.

At the same time, transition to market economy administration methods and strengthening of banks’ role brings the necessity of changes in the banking system to the forefront.
Under the modern conditions the analysis of a bank’s long-term development should be made in two directions: by means of studying of possible conditions and operations’ directions, which envisages rapid correction of the current activities and the efficiency of a bank’s work, as well as by means of making of a long-term forecast. The first task is implemented through marketing and improvement of use of the existing resources. The conditions for the implementation of this task are the following: maximum use of the existing capitals, attraction of money resources and introduction of new types of services, carrying out of the banking market’s analyses, improvement of service quality, organizational changes, which will lead to raising of management efficacy.
Based on the made analysis, in the work there drawn a conclusion that the management of a definite part of Georgian banks can not manage the assets so that, on the one hand, profitability should not decrease, and on the other, preserve the necessary liquidity level.
If the managers of Georgian banks take into account the well-tried assets and liabilities management methods, worked out by foreign banks, they will be able to solve a bank’s main dilemma – the problem of liquidity and profitability, which will have an effect on strengthening of separate banks and the banking system on the whole. A strong banking system should become a basis for the recovery of the country’s economy