With the recent implementation of bold reforms and liberalizations, Georgia developed a dynamic and innovative financial sector. Georgia's growing economic potential reflects in its improved global financial rating. Fitch Ratings upgraded the country's financial outlook from "stable" to "positive" in January, confirming its BB credit rating. Furthermore, in December, the International Monetary Fund commended Georgia's strong performance in 2022, attributed to increased financial inflows, transit trade, and tourism revenue.

The banking sector in Georgia is recognized for its well-managed and highly capitalized nature, as well as its liquidity and resilience to various shocks. The country's two largest banks, Bank of Georgia and TBC Bank, are listed on the London Stock Exchange and comply with European Union (EU) standards. "This profitable sector is helping to support economic growth in Georgia and is characterized by a concentration of players but with a high level of competition, thanks to initiatives like open banking and the law for microfinance institutions to become micro-banks", notes Archil Mestvirishvili, Acting Governor and Vice Governor of the National Bank of Georgia (NBG). The NBG has been recognized for its prudent regulation and has received multiple international awards. 

The sector is also healthy in terms of profits. Vakhtang Butskhrikidze, CEO of TBC Bank, which also operates in Uzbekistan and Azerbaijan, states that "TBC's profitability is more than 20%". 

"The banking sector is also one of the most developed in the region, with increasing digitalization efforts being made by the banks", says Archil Gachechiladze, CEO of Bank of Georgia. Leading banks such as Bank of Georgia and TBC Bank have prioritized digital practices and technology in their banking services. Bank of Georgia, with 1.1 million active users, provides services on par with leading online banks such as N26 or Revolut. Similarly, TBC Bank has integrated digital practices into its services, with 99% of its clients' transactions completed online. TBC Group offers non-financial services to its customers through its digital ecosystem TNET (including TNET Super App), which has 1.5 million monthly active users, offering easy and fast digital inputs to its customers in e-commerce, housing, auto and lifestyle.

Perhaps the best evidence of the sector's efficiency and stability is that "there have been no banking bankruptcy cases for many years", as observed by Ms Thea Lortkipanidze, CEO of Terabank. The Georgian banking sector is vital to the country's economic growth and a notable player in the regional financial landscape. Thea Lortkipanidze also states, "The CEPA between Georgia and the UAE will provide a range of benefits, including promoting financial cooperation between the two countries, facilitating cross-border payments and settlement, and enhancing access to new markets for businesses in both nations."

With Georgia's positive prospects and increased access to international markets, the importance of the banking sector is set to grow, further enhancing its appeal.

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