LogoRegulatory Alerts

Georgia: lending & credit regulation

Regulated

Georgia lending regulated by NBG under Microfinance Law; strict capital and classification rules

Lead regulator:
National Bank of Georgia
Key law:
Law of Georgia on Microfinance Organizations (2006)
Last updated:
2026-07-12

The National Bank of Georgia (NBG) serves as the primary supervisor for microfinance organizations in Georgia, enforcing registration, capital, and conduct standards under the 2006 Law on Microfinance Organizations. This framework mandates a minimum paid-in capital of 1,000,000 GEL and requires strict suitability checks for administrators and significant shareholders.

Supervisory oversight is reinforced by detailed regulations on prudential standards, including a mandatory minimum regulatory capital of one million GEL and strict liquidity ratios. Microfinance organizations must also adhere to standardized asset classification procedures, categorizing assets into five risk levels and establishing mandatory reserves for potential losses.

For commercial banks, the NBG has introduced specific classification systems for loans based on the Sustainable Finance Taxonomy, allowing for green, social, or sustainable loan designations. This indicates a regulatory focus on aligning lending practices with sustainable finance goals while maintaining robust prudential oversight across the sector.

Who regulates

  • National Bank of Georgia

    Primary supervisor for microfinance organizations and commercial banks

    [1][2][3][4]

Core laws & rules

  • Law of Georgia on Microfinance Organizations (2006)

    Establishes the legal framework for microfinance organizations, including registration requirements, permissible activities like micro-lending, and capital standards.

    [4]

  • Regulation on Supervision and Regulation of Microfinance Organization Activities (2018)

    Sets prudential standards, capital adequacy, and liquidity ratios for microfinance organizations.

    [2]

  • Regulation on Loan Classification and Reporting according to the Sustainable Finance Taxonomy (2022)

    Mandates commercial banks to classify loans as green, social, or sustainable based on specific taxonomy criteria.

    [1]

  • Regulation on Assets Classification and the Creation of Reserves for Possible Losses by Microfinance Organizations (2018)

    Requires microfinance organizations to implement standardized asset classification and create mandatory reserves for loan losses.

    [3]

Licensing & registration

  • Microfinance Organization

    Registration required with the NBG; strict suitability criteria for administrators and significant shareholders. Capital: 1,000,000 GEL

    [4][2]

Restrictions & warnings

  • Microfinance organizations must maintain a minimum regulatory capital of one million GEL and adhere to strict capital adequacy and liquidity ratios.

    [2]

  • Banks can only classify loans as green, social, or sustainable if they meet specific criteria defined in the Sustainable Finance Taxonomy.

    [1]

Direction of travel

  • Regulatory focus is expanding to include sustainable finance, with specific classification rules for green and social loans introduced in 2022.

    [1]

Sources

  1. Regulation on Loan Classification and Reporting according to the Sustainable Finance Taxonomy · 2022-08-04
  2. Regulation on Supervision and Regulation of Microfinance Organization Activities · 2018-07-05
  3. Regulation on Assets Classification and the Creation of Reserves for Possible Losses by Microfinance Organizations · 2018-07-05
  4. Law of Georgia on Microfinance Organizations · 2006-07-18

Email alerts for Georgia updates

New circulars, rules and guidance — a digest in your inbox, same day.

This guide is compiled automatically from 4 primary-source documents published by Georgia's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.