The article discusses how the banking sector in Georgia has evolved over time, focusing on government regulations, bank restructuring, and risks in banking activities. The main findings are that Georgian banks survived the 90's crisis by holding assets in foreign currencies and with support from the national bank. Regulations in Georgia have shifted from strict to more flexible, promoting stability. As banking competition grows, so do financial risks, which can be managed through further reforms. Overall, the banking sector in Georgia has strengths and weaknesses that need to be addressed for continued development.