Regulatory Alerts2020-06-29 | 132/04Rule on Licensing, Management and Market Exit of a Bridge Bank
The Governor of the National Bank of Georgia issued Order 132/04 approving simplified procedures for the licensing, management, and market exit of bridge banks to maintain critical financial functions during resolution. The regulation mandates that the Ministry of Finance apply for licenses, establishes specific liquidity and capital adequacy exemptions, and restricts permitted banking operations to low-risk activities. Furthermore, it requires bridge banks to develop and implement a market exit plan within six months, allowing for mergers or sales, while granting the National Bank authority to revoke licenses and initiate liquidation if exit objectives are not met.
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