POTENTIAL AND POSSIBLE EFFECT OF THE DEVELOPMENT OF GEORGIAN FINANCIAL MARKETS

The reduction of trading volume on the Georgian Stock Exchange was caused by the financial crisis of 2008 and a change in the legislation, which resulted in the abolition of the self-regulatory system of the stock exchange and its controlling body became the National Bank of Georgia. Since 2007, the stock exchange has been managed by a group of banks that currently own 58% of the stock exchange shares, of which the Bank of Georgia has the largest package with 46%. As of March 1, 2022, the balance of deposits of legal entities and individuals attracted by commercial banks in national currency is 15.06 billion GEL, weighted by an average of 11.06%, and the volume of deposits of legal entities and individuals attracted in foreign currency - equivalent to 22.03 billion GEL. , On average by 0.81%. (SEB, 2022) In total, 37.1 billion GEL of free cash is deposited in Georgian banks, and if at least a quarter of it returns to the Georgian Stock Exchange, it is easy to imagine the level of economic growth and the size of the national economy. As of May 6, 2022, about 2.31 billion GEL has been accumulated in the pension fund, 60% of the objects are placed on certificates of deposit, 1.3% - on time deposits, 5.8% - on foreign corporate shares (133.98 million 56 l),% - interest Accounts in foreign currency, and 24.69% - on interest accounts (Pension Agency, 2022). In other words, the funds kept by the citizens of Georgia in the pension fund either go to the banking system and only then take part in the short-term activity, ie by buying their securities for about 134 million GEL with the growth of the foreign economy. The development of the Georgian stock market would have facilitated the growing funds of the pension fund, invested more profitably with bank deposits, and the national economy growing faster, with more commission and interest rate pressures than bank credit. As of April 30, 2022, the capitalization of the stock market on the Georgian Stock Exchange amounted to about 2.29 billion GEL, which is only 3.8% of the GDP of Georgia in 2021 (60.2 billion GEL), while this figure has developed stock markets. Countries have more than 100% of GDP. According to the years, the ratio of capitalization of the Georgian stock market to GDP in the same year is declining and was 4.8% in 2020 (due to the pandemic, GDP decreased this year, the capitalization of companies remained largely unchanged), in 2019 - 3.97%; In 2018 - 4.39%; In 2017 - 8.16%. As of May 2, 2022, securities of 23 companies with a total market capitalization of USD 0.748 billion and an average daily turnover of 21 GEL in April 2022 were admitted to the trading system of the CBS. On March 24-30, 2022, we conducted a survey on how people manage their savings through the platform google forms, in which 629 people participated. The results of the survey showed that the culture of accumulation in the population is quite high and they would like to buy securities on the Georgian Stock Exchange. In our opinion, the development of the securities market in Georgia will reduce the employment problem partly through self-employment, the economy will be developed thanks to direct financing of economic entities (and not by scheme = population = bank => enterprises) and increase the speed of cash circulation. The state has a big role to play in the process of establishing a securities market in developing economies. The securities market is a necessary and important element of the global economy, without which the normal functioning of a market economy is impossible. Relevant legislative changes and political will are needed to strengthen the Georgian stock market.