Deposit Insurance Agency is an independent legal entity of the public law (LEPL) that was established on July 24, 2017 in accordance with the Law of Georgia on Deposit Insurance System. Main function of the Agency is to insure deposits of resident and non-resident individuals in all commercial banks operating in Georgia. In the event of commencement of liquidation, insolvency or bankruptcy proceedings in any of the banks (according to the Law of Georgia on Activities of Commercial Bank), the Deposit Insurance Agency will ensure reimbursement of deposits to depositors in the amount of the set limit within 20 calendar days.
The Agency is led by the Head. Otar Dzidzikashvili was selected through an open contest and appointed as the Head of the Agency in September 2017. Organizational structure of the Agency was formed in accordance with the best international practice. There are five employees working in the Agency including the Head, a financial expert/ analyst, a lawyer, a compensation expert and an administrative specialist.
The Agency is supervised by the Supervisory Board comprised of the Minister of Finance, the Minister of Economy and Sustainable Development, the President of the National Bank of Georgia and two (2) independent members selected by commercial banks.
Deposit Insurance Agency administers deposit insurance system in the country and ensures its proper and effective operation. Deposit insurance system, together with the prudential regulation, liquidity support and effective supervision represents an important component of financial stability and safety and protects depositors from incurring losses (within the set limit).
Deposit Insurance System currently is implemented and successfully operating in 114 countries, including all EU member countries and the United States. Events of the last decade clearly proved that even with the developed economy and the strongest regulator cases of banks’ insolvency are frequent, which one more time emphasizes importance of the system. The system was implemented in Georgia with the support of the World Bank and based on the Core Principles for Effective Deposit Insurance Systems.