<p>Following the transition to a market economy, the banking sector in Georgia has changed radically, becoming virtually state-independent business and one of the most successful economic reforms in the country. Nevertheless, there is still a process of concentration/consolidation of banks, the identity of prices for banking products and services, the difficulty of establishing a place for a new player in the market, etc., which limits the elements of interbank free competition. The above may be caused by the lack of proper regulatory mechanisms by the state. It is a fact that the existing mechanisms and procedures of administration in the relevant direction need to be refined; particular attention should be paid to sharing of foreign experience in interbank competition, analysis of new legal regulations implemented in the banking sector of Georgia, revealing the role of the state in improving the country's interbank competition policy in responsible lending to individuals.</p>