In the modern economy, nonbank financial and credit institutions are one of the most important part in the financial system. Their functioning contributes to the development and stability of the economy. They are a part of financial intermediation and are an alternative of commercial banks. Nonbank financial organizations are participants in the loan market and contribute to the improvement of their activities, the improvement and sustainability of the financial system. The issue of nonbanking sector activities and regulation is relevant in the Georgian reality.
The master thesis contains an introduction, the main part of the text, a conclusion and the used literature. The introductory part discusses the actuality of the topic, the purpose and objectives of the paper, the formulation of the object of the research, the methods used for the research and the novelties of it.
In first chapter thre is discussed the main directions of nonbank financial and credit institutions at the present stage and its historical and modern theories in the credit market. In second chapter there are the main directions of the activities of microfinance organizations, also there is an overview of the activities of microfinance organizations as the main non-bank financial-credit institution in Georgia and successful companies and the stages of their development. In the third chapter we talk about a credit unions, about their regulation system and legislative changes in Georgia.
The report presents results and recommendations that will help to improve the activities of nonbank financial and credit institutions in Georgia.