The financial sector in Georgia is mainly comprised of commercial banks. Currently, there are fifteen commercial banks holding around 91% of total assets in the financial sector.
Apart from that, the concentration is high, with the two largest banks accounting for around 77% of total assets in the banking sector and 70% in the financial sector.
Pension funds share is increasing standing at around 4% by the end of 2022.
While the share of microfinance institutions (MFIs) is quite small, they play an important role, especially in financing SMEs and access to finance in rural areas. While the insurance market has been growing in recent years, it still has a relatively small share in the total assets of the financial sector.
Taking these characteristics of the Georgian financial system into account, the NBG’s sustainable finance policies and regulations are currently mainly directed at commercial banks.
However, the NBG also acknowledges the importance of the capital market for scaling up sustainable finance and thus, includes actions dedicated to capital market participants in its SF action plan- NBG report reads.
