Deposit Insurance System is a significant component of financial safety net, which upon occurrence of an insurance case helps to maintain stability in banking sector and protect depositors from losing their funds (within the set limit).

Insurance case is the event of commencement of liquidation, insolvency or bankruptcy proceedings of a commercial bank according to the Law of Georgia on Activities of Commercial Banks.

Deposit insurance protects customers from losing their funds in the amount of the set limit. It also helps to maintain stability of financial sector, since it reduces the risk of expanding the problem, panic and mass deposit outflow upon emergence of problem in any bank.

Deposit Insurance System, according to the Law, automatically applies to all insured deposits

The system introduction does not imply additional costs for the depositors.

Deposits are insured within the limit of GEL 15,000 for each individual persons’ deposit in each bank. In the event depositor has several accounts, his/her accounts will be summed for the bank, though the maximum reimbursed amount will be the same GEL 15,000.

At the initial stage of the reform, the maximum amount of compensation is set as GEL 15,000. In case your deposit exceeds GEL 15,000, it will be insured only up to this amount and you will be reimbursed GEL 15,000, regardless the currency of the deposit. The amount above GEL 15,000 shall be compensated as provided under the effective legislation of Georgia.


The coverage level of GEL 15,000 limit was established based on best international practice and peculiarities of the local banking sector. The coverage level is optimal, since it fully covers most of the depositors. However, the set coverage level will be gradually reviewed and be increased, while considering market characteristics.

Insurance premium is paid by commercial banks operating in Georgia.

Insurance contributions paid by banks are accumulated in the Deposit Insurance Fund. Upon occurrence of the insured case, depositors will be reimbursed out of this Fund. 

Deposit Insurance System is administered by the Deposit Insurance Agency. Organizational structure of the Agency was established with consideration of the best international practice. The Agency has 5 employees including its Head. Operational expenses of the Agency are covered from the Deposit Insurance Fund. 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 Agency will ensure uninterrupted compensation of deposits.

Deposit Insurance System is supervised by the Supervisor Board consisting of the Minister of Finance of Georgia, President of the National Bank of Georgia, Minister of Economy and Sustainable Development and two independent members.

All type of deposits of Individuals (residents and nonresidents) are insured – including current accounts, term deposits, call deposits, etc.

Insurance does not apply to deposits of those individuals whose right to access the deposit is restricted according to the Georgian legislation (loan guarantee amounts, sequestered amounts, etc.). Also, deposits of legal entities, commercial bank administrators and their family members, as well as deposits of shareholders holding at least 5% or more of the bank’s capital and deposits of their family members are excluded from insurance.

All commercial banks operating in Georgia are members of the deposit insurance system, therefore, all deposits of individual persons in any bank are insured according to the same rule.

In the event of merger of commercial banks, upon occurrence of an insurance case, an individual, within 6 months following such merger, can claim compensation of deposits insured in each bank before merger separately within the coverage level. For insurance cases, occurred after the mentioned period, individual depositors will be compensated with standard procedure.

If a depositor has several accounts in one bank, they will be summed up. The maximum amount to be reimbursed for one bank is GEL 15,000. Deposits of individuals placed in various commercial banks are insured within the set coverage level separately in each commercial bank.

Funds on joint account for each depositor are insured and reimbursed within the limit of GEL 15,000. Allocation will be made based on share of account holders.


Yes, the insurance terms are identical for deposits placed in any currency. 

If a commercial bank faces the problem with respect to deposit reimbursement, the Deposit Insurance Agency within 20 calendar days ensures payment of compensation in the amount of the set limit (GEL 15,000). For payout purpose, one of the commercial banks operating in Georgia will be selected. All required information will be provided to depositors by the Agency upon occurrence of the insurance case. The period for compensation of deposits will be gradually reduced to 7 days according to the international best practice.

Insured deposits will be reimbursed in GEL - the national currency. If individual deposit is in foreign currency, the compensation is calculated and compensated in GEL based on the exchange rate set by the National Bank of Georgia, at the date of the insurance case occurrence though not exceed the maximum insurance amount.

If upon occurrence of the insurance case, there is no sufficient amount in the Fund to compensate depositors, the Agency is entitled to borrow from the state, or from local and international financial institutions or search for the other alternate sources.

The funds accumulated in the Deposit Insurance Fund are managed by the Deposit Insurance Agency in accordance with the investment policy. Also, it is entitled to outsource the Fund for management to the Treasury of the Ministry of Finance or the National Bank. Investment policy is based on the principles defined in the legislation according to which the Fund resources will be invested in risk-free assets. Profit generated from investment will be transferred also to the Fund’s account.


Depositor will retain the right to claim compensation from the Agency for 3 years following occurrence of the insurance case. After expiry of this term, the amount due to depositor will be directed to the National Bank for compensating depositor in accordance with the Georgian legislation.