Capital Market of Georgia: The Reasons of Fail

Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 05 June 2020

Capital Market of Georgia: The Reasons of Fail

Davit Aslanishvili

Caucasus University, Georgia

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10.31014/aior.1992.03.02.243

Pages: 857-867

Keywords: Stock Market, Monopoly of Commercial Banks, Economic Growth, Capital Market

Abstract

The study examines the financial and economic reality and backwardness of Georgia. It reflects the monopoly on the financial market owned by commercial banks thanks to the steady support of the state and the central bank, which ultimately does not allow for the attraction of alternative financial capital and is one of the main reasons for the country's failure. In this respect, the possibility of developing an economy is directly linked to this problem. Developing an economy requires large financial investments and a resources. Based on our research we have come up with a number of proposals to be introduced and to change the situation and to build a competitive financial market. The ultimate goal is to weaken / end the monopoly position of commercial banks and neutralize the negative activity of the National (Central) Bank of Georgia as the regulator of this market. This is the only way to create the independent and competitive sources of finance and investment in Georgia. Ultimately, this will increase market capitalization and eliminate the economic backwardness that exists between Georgia and a number of leading countries in the field of financial market and its infrastructure.

References

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  2. Aslanishvili, D., & Omadze, K. (2019). Green Economy and Access to Finance in Georgia (Going Beyond the Commercial Banking Sector to Finance Businesses in Georgia). Journal of Economics and Business, 2(3).

  3. Aslanishvili, D. (2016). Market foundation for sustainable economy growth and energy policy (Georgian case). Modern Economy, 7(3), 314-319.

  4. Aslanishvili, D., & Omadze, K. (2016). Origins and the Reasons of Monetary Crises in Georgia (1995-2016). Modern Economy, 7(11), 1232-1250.

  5. Асланишвили, Д. (2015). Фондовый рынок Грузии: реалии и будущее. Экономист, (3), 83-96.

  6. Omadze, K. (2015) IMPORTANCE OF MORTGAGE BANKS FOR CREDIT MARKET DEVELOPMENT. In Materials of reports made at the international scientific-practical conference held at Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University in 2015 (p. 521).

  7. Aslanishvili, D. (2015). Georgian Eurobond: Unknown Reasons of Issue. In Materials of reports made at the international scientific-practical conference held at Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University in 2015 (p. 317).

  8. Aslanishvili, D. (2014) Stock Market in Georgia: Existing Reality and Uncertain Future [Safondo bazari Sakartveloshi: arsebuli realoba da gaurkveveli momavali]. TSU, Science (In Georgian). https://tsu.ge/science/?leng=ge&lcat=jurnal&jnomeri=6&tid=1

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  11. Aslanishvili David, Kristine Omadze. (2013) The influence of global economic crisis on world economy, its reasons and overcome steps. Caucasus Univeristy publishing house. ISSN 1987-8869. Tbilisi 2013. Page 35-45. www.cu.edu.ge.

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