Credit and Financial Support of Functioning and Development of the Enterprises of Small and Medium Business in Georgia
Vladimer Glonti, Irina Vashakmadze

The issue of sustainability, in its broad sense, is crucial not only for banks, but also for the other financial institutions in market economy. In the competitive environment it shows the correlation of the enterprises in the process of achieving the economic sustainability. The substantial contribution to building the financial sustainability of the banking system was the growth of the financial performance of the banking system that followed the decrease of banks in number and the respective increase in size. The bank deposit insuring system, as the mean of securing the interest of small deposit holders in the event of a bank going bankrupt, will be an additional factor for building trust in the banks and improving the condition of the banking system in the context of the situation in Georgia. Therefore, its introduction will have interrelated positive financial impact on the banking sector. Among the various factors effecting economic situation in the country, one of the most important components are regulations developed for building financial sustainability of the banking system. In the process of elaborating the regulations, affecting the financial sustainability of the banking system, we have to consider and create the practical mechanisms that will make these regulations actually work. It is important to consider the experience of other countries and also special characteristics of the country’s economy.

Full Text: PDF     DOI: 10.15640/jfbm.v3n1a6