Scope Ratings, a German-based agency, highlighted Georgia’s new microbanking framework, designed to boost financial sector competitiveness, expand services, and support entrepreneurs.

The National Bank of Georgia cited the article, noting that granting the first microbanking license to MFO Business Capital in December was a key milestone, leading to a rating upgrade from B/Positive to B+/Stable.

The report outlines microbanking’s advantages over microfinance organizations, including higher lending limits and stricter regulations to reduce lender risks. It projects the sector could grow to ₾1 billion ($360M) by 2026 with 20% annual lending growth.

The article also notes that entities beyond microfinance organizations can apply for microbanking licenses, with the NBG enforcing a strict one-year decision deadline.