Capital Market of Georgia: The Reasons of Fail

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.