OREANDA-NEWS. September 28, 2009. IFC, a member of the World Bank Group, cooperated with the Association of Banks of Georgia and the Georgian Stock Exchange to develop a voluntary corporate governance code to help banks introduce international best practices and increase confidence in the country’s banking sector

IFC, the Association of Banks of Georgia, and the Georgian Stock Exchange presented the code at a ceremony in Tbilisi to representatives of leading Georgian banks and recommended it as the basis for corporate governance policies for all banks  belonging to the association. The voluntary code sets higher standards of corporate governance than those  stipulated in Georgian  law, meaning that Georgian banks participating in the code are demonstrating their commitment to elevate their corporate governance standards to build trust among investors.

IFC will follow up with a public awareness campaign and hold introductory roundtables to broaden awareness of the code’s potential to influence Georgian businesses in a positive manner.

“We are glad that more and more banks pay special attention to corporate governance,” said Zurab Gvasalia,  President of the Association of Banks of Georgia. “The corporate governance code will serve as a benchmark for implementing corporate practices at the bank level.”

Maia Tevzadze, Project Manager for IFC’s Georgia Corporate Governance Project, said: “The primary role of the corporate governance code for banks is to raise national standards. It also will  serve as a positive market signal and help Georgian banks build and maintain investor confidence.”

The IFC Georgia Corporate Governance Project aims to improve the corporate governance practices of Georgian companies and banks, thereby helping them operate more effectively and allowing them greater access to capital. IFC is collaborating in this endeavor with BP and the co-venturers in its oil and gas projects, as well as with the Canadian International Development Agency.