Georgia’s banking sector is resilient, it is benefiting from – and contributing to – a strong economy. But there are some vulnerabilities that need to be addressed.

In an economy that is highly dollarised and in which the local currency has gone through a bout of devaluation, Georgia's central bank governor, Giorgi Kadagidze, has his work cut out. However, in taking a long-term approach, rather than looking for any quick fixes, he is confident that the country can achieve its currency goals.

In his spacious office high above Tbilisi, Georgia’s newly elected prime minister – and wealthiest citizen – Bidzina Ivanishvili talks about his plans to boost investment, to mend the relationship with Russia and to manage a difficult political cohabitation.

As the political stand-off in Georgia between the new prime minister and president shows no sign of abating, the country’s economy is showing resilience and its banks are eyeing opportunities to strengthen growth by tapping into the country's unbanked population.

The governor of the National Bank of Georgia has to tailor his maintenance of local financial stability to a banking sector with high levels of foreign ownership and aspirations to expand across the Caucasus region and beyond.

Georgian banks suffered in the global financial crisis, but with low banking penetration accompanied by conservative and prudent financial regulation, they appear to be on sure footing to growing profitability.