EMPIRICAL ANALYSIS OF INTERBANK COMPETITION AND DIRECTIONS FOR ITS IMPROVEMENT
EMPIRICAL ANALYSIS OF INTERBANK COMPETITION AND DIRECTIONS FOR ITS IMPROVEMENT

Summary/Abstract: The current economic processes in Georgia had a significant impact on the banking market. In the dynamics of certain period, a number of commercial banks faced the problem of financial stability, to eliminate which it was necessary to mobilize additional monetary resources. It is important to analyze the difficult financial and economic situation in the country, which to a certain extent has caused significant changes in the banking sector. This situation has put the creation of a competitive environment on the agenda in the banking market as an important actor for maintaining the stability and economic sustainability of the financial sector. It should be noted that the current situation in the banking market was somewhat positively reflected, as national banks began to provide a competitive environment. The existence of a healthy competitive environment is ultimately a prerequisite for the development of a developed and financially sustainable competitive banking sector. The paper discusses the data reflected in the banking market over the last 5 years, on the basis of which we conducted an in-depth study and studied the interbank competitive environment. We have calculated interbank competition by means of relevant indices, and suggestions for its improvement are offered in the paper.

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