About formation of bank supervision and contol systems in Georgia (ABSTRACT)

Eliso Pirtskhalava

For the last ten years the world banking system has been noted for innovations both in the services sector and management methods with the purpose of banks’ profit maximization.

Given the above-mentioned, regulation and supervision services attached to Central Banks as well as to other independent bodies, if available in a country (in the conditions of three-floor banking system), play no less important role in the creation of perfect banking system.
Our purpose was to revise formation processes of the above-mentioned Central Bank bodies of Georgia and to analyze their activity in chronological order: formation, functioning and present condition.
This work contains brief description of historical background in the creation of the system of commercial banks and principal one ? the National Bank of Georgia as a main regulation and supervision body of country’s banking system.
In considering the structure of the National Bank we tried to accentuate functions of certain administrations that deal in the supervision and control over other banks of the country.
Instable level of socio-economic development and frequent political tensions make it possible to note that establishment of banks’ supervision and control body in the National Bank of Georgia should deserve approval for the creation and support of effective banking sector in the country.