The FINANCIAL — Bank of Georgia has separated its non-profile assets in line with the recent regulations stated by NBG, which deny commercial banks from undertaking non-core businesses.The Bank has welcomed the decision of NBG as it will help to remove any skepticism or doubts regarding prioritizing its subsidiaries to finance.
“We have always proved that we never financed our subsidiaries. Furthermore, each of them has good management and successfully manages to get finances from international institutions. Meanwhile, skepticism has existed in society. So, we are glad that we have finally got the opportunity to meet all the requirements and standards of our society. We are separating assets legally as well as by governance,” said Irakli Gilauri, CEO at Bank of Georgia, the leading Georgian bank.
The new corporate structure and final separation of non-core assets will come into force by the end of 2015. The recent change will help the Bank to focus on banking activities especially now that Bank of Georgia has purchased 100% of the PrivatBank Georgia. PrivatBank is the 9th largest bank in Georgia by total assets. Purchase of PrivatBank will help Bank of Georgia to further strengthen its leading positions in retail banking.
“PrivatBank has a large network. It is also well-positioned in terms of its POS terminals, credit card business. We will combine our successful positioning and will bring additional value to all customers,” said Gilauri.
Following structural changes the management of the Bank has been separated in line with banking and non-banking directions. Changes were made in the management of the Bank.
Irakli Gilauri, CEO of Bank of Georgia, will move to the supervisory board of the Bank. He will also continue to work as CEO of Bank of Georgia Holdings plc. Murtaz Kikoria, who in the meantime will act as the Bank’s financial director, will be appointed to the position of CEO of the Bank from summer 2015.
Kikoria was CEO of Georgian Healthcare Group (GHG). Before joining GHG, Murtaz was CEO of Insurance Company Aldagi BCI since 12 October, 2012. Before that he served as Deputy CFO at Bank of Georgia. Kikoria also worked as Deputy Chief Executive Officer of Internal Control at JSC Bank of Georgia. He served as an Acting Chief Executive Officer of BG Bank, a former Ukrainian subsidiary of JSC Bank of Georgia. And since October 2008, he was Deputy Chief Executive Officer of Compliance at JSC Bank of Georgia.
From 2005 to 2007, Kikoria served as a Senior Banker at the European Bank for Reconstruction and Development (EBRD). And before joining EBRD, he was Head of Banking Supervision and Regulation at the National Bank of Georgia from 2001 to 2005.
In Kikoria’s words, he does not plan to implement fundamental changes. However, the Bank will continue to offer innovations to its customers.
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