Directions for improving banking activities at the contemporary stage (საბანკო საქმიანობის სრულყოფის მიმართულებები თანამედროვე ეტაპზე)
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Date
2020
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The banking sector is an integral part of the financial and credit system.
Consequently, in order to promote economic growth in the country, it is necessary
to move the economy to a new stage of interaction between the real and
financial sectors, which is reflected in increased investment in the restructuring
of production and the renewal of major industry funds.
Due to the fact that the securities market in Georgia is almost underdeveloped,
deposits are the predominant form of mobilization of financial resources in
banks. Therefore, the task of banks is to create forms of attracting funds that will
actually interest customers and develop their saving habit, which determines
the investment opportunities of the economy. The basis of banks’ interaction
with the industrial sector of the economy is their credit-investment and depositaccumulation
strategy.
The difference of the money market from all other markets is its monopoly
nature; the monopolist is usually the National Bank. In the Georgian reality,
inflation has long been only changing its magnitude and form. Inflation
expectations are very high, which in itself is a strong inflation factor. Inflation
is dangerous for a weak economy, but on the other hand, limiting inflation also
creates difficult problems.
Thus, the economic development of the country is highly dependent on the
efficient operation of the banking sector. Accordingly, the article discusses the
directions and prospects for improving banking activities, ways to increase credit
and investment potential, etc.
Description
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Keywords
Globalization, monetary policy, credit-investment mechanism, retail banking
Citation
Economics and Business, №3, 2020, pp. 101-107