The banking system of the Republic of Abkhazia developed independently since the adoption of the laws “On the National Bank of the Abkhaz SSR” and “On Banks and Banking of the Abkhaz SSR” passed by the Supreme Soviet of the Abkhaz SSR on February 28, 1991. The Banking system of the Republic of Abkhazia was founded on the basis of the Abkhaz Republican Bureau of the State Bank of the USSR. These laws made it possible to determine the need for banking institutions in the interests of the economy of Abkhazia.
At the beginning of 1991 with the adoption of these laws the banking system of Abkhazia was presented by the Abkhaz Republican Bureau of the USSR Banks: the State Bank, the Savings Bank, the Promstroibank, the Agrarian Bank and the Zhilsotsbank. The creation of commercial banks was allowed, but the process was governed by the USSR legislation. In essence, the whole banking system was based on a vertical scheme of management and it could not account the interests of regional economic development.
The laws adopted in February 1991 by the Supreme Council of Abkhazia gave the opportunity to create the banking system at the regional level, particularly a network of commercial banks, that could be established by legal entities and private individuals concerned in development of separate branches of the economy as well as the region in whole. By the beginning of the war in Abkhazia (14 August 1992) the banking system was diversified.
The hostilities in Abkhazia destroyed the existing economic potential of the country and resulted in destruction of the well-established banking system.
After the war in Abkhazia out of all pre-existing banks only the Central Bank and four regional banks preserved: one - in Gagra region, two - in Gudauta region and one in Tkuarchal. All other banks were abolished or self-dissolved.
During 1994, the Central Bank of Abkhazia registered thirteen commercial banks, that on the basis of the license proceeded to business in all regions of Abkhazia: in Gagra region - «Gagra-Bank»; in Gudauta region - «Gudauta-Bank» and «Agrarian Bank»; in Sukhum region - Sukhum regional bank «Eshera»; in Sukhum - 5 Banks: «Sukhum-Bank», «Garant-Bank», «Bashnyh-Bank», «Tiko Bank» and «Menatep-Sukhum» (affiliate office of the Bank «Menatep»); in Gulrypsh region - «Prestige»; in Ochamchyra region - «Ochamchyra Commercial Bank»; in Gal region - «Gal-Bank» and in Tkuarchal region - «Tkuarchal-Bank». The same year the Government of Abkhazia authorized the Savings Bank activities.
The National Bank of the Republic of Abkhazia was founded under the decree of the President of the Republic of Abkhazia on 11 February 1995 on the basis of the Central Bank of the Republic of Abkhazia.
The same year the National Bank established the Cash Settlement Center (CSC) that intensified the money turnover in the National economy through the ordering of interbank calculations, as well as the cash flow control through the banking system.
During 1995 - 1996 years the National Bank registered three commercial banks: in Sukhum - «Apra-Bank» and «Invest-Bank», in Gudauta region - «Leon-Bank». Thus, by the end of 1996 there operated 16 commercial banks in Abkhazia, seven of which - in Sukhum. In 1998, the Savings Bank activities were legally formalized.
Consummated on January 1, 1999 new laws «On the National Bank of the Republic of Abkhazia (the Bank of Abkhazia)» and «On Banks and Banking» more specifically identified the structure of a bimodal banking system: the National Bank of Abkhazia is at the upper level and commercial banks are at the second level, as well as the tasks and functions of the banking system, the responsibility of commercial banks for infraction of established economic standards by the National Bank and other indicators, regulating the activity of commercial banks.
The banking system in the Republic of Abkhazia as at October 1, 2009 is presented:
By the National Bank of the Republic of Abkhazia (Bank of Abkhazia), and 15 commercial banks (included: in Sukhum, including the Savings Bank of the Abkhazia* in regions: Gagra - 1, Gudauta - 2, Sukhum-1, Gulripsh - 1, Ochamchira -1 )
- 7 affiliated branches (of which: 6 branches of the Savings Bank of the Abkhazia* and 1 branch of the Commercial Bank «Black See Development Bank» is in Gal region);
- 23 departments of the Savings Bank of the Abkhazia*, of which: 5 departments are in Sukhum;
- 1 additional office of the Commercial Bank «Garant Bank» is in Sukhum;
- 9 operatiing cash offices of commercial banks out of the cash unit (of which: 6 offices are in Sukhum, 3 offices of the Savings Bank of the Abkhazia* are in Ochamchira region);
- 2 exchange offices of commercial banks are in Sukhum.
A wide network of the banking system indicates an increase in the volume of banking services, which contributes to more rapid banking transactions on behalf of clients. |
