Government Policy about Commercial Banks

Bank activities like any other commercial activities need to be regulated by the government not only during the crisis period but in everyday life. However, the need of governmental regulation and its role is increasing in the period of crisis. The paper refers to the basic principles of bank regulation and analyzes statistical data of commercial banks various instruments. The article considers the issues for overcoming the crisis period in commercial banks and for comparison describes their functioning in non-crisis periods as well. In conclusion, for commercial banks stable functioning banking activities should be supervised and regulated in the crisis period that provides the reliability and sustainability of commercial banks, thus avoiding the risk and in this way securing the interests of commercial banks depositors and other creditors and Georgian Financial Supervisory Agency as well. However, it should be noted that any kind of government intervention is inexpedient and will not improve or maintain development of bank sector in general. Hence the right state policy is needed.