Basel Committee on Banking Supervision invited the National Bank of Georgia to develop new international supervisory approaches
The National Bank of Georgia (NBG), as a member of Basel Consultative Group (BCG), commences working within the Basel Core Committee's Supervision and Implementation Group. This group is one of the most important branches of the Basel Committee, which works on implementing advanced approaches in international supervisory policies, and the supervisory principles that it develops constitute international standards.
Within the framework of the aforementioned working group, the first meeting of the working team on determining prudential norms for Asset Quality Review (AQR) will be held in Basel on January 21. Representatives from European Central Bank, United States Federal Reserve, Bank of England and other leading supervisory institutions will participate in the meeting. The National Bank of Georgia, along with the Polish colleague from the Basel Consultative Group, will be represented by Vakhtang Sikharulishvili, Head of Corporate and SME Credit Risk Division, within Specialized Groups and Supervisory Policy Department.
This is the first time that Georgia has been invited to share experience in the working group of the aforementioned level. It must be noted that during the past several years, NBG has been consistently developing contemporary approaches to banking supervision. Particularly vast experience has been accumulated in terms of evaluating AQR risks. In this regard, the assessment from FSAP mission has played an important role as well, the detailed documentation of which will be published in the nearest future, and which graded NBG's approaches to credit risks as "very advanced."
Giorgi Kadagidze, Governor of the National Bank of Georgia commented: "The National Bank of Georgia is moving to an essentially new stage. In line with international financial organizations' recommendations, during the last year, delegations from the central banks of more than 15 countries visited NBG to share our experience. At present, NBG representatives are invited to large international expert teams, in order to render exemplary models, implemented by Georgia, accessible for foreign central banks as well. A small country like Georgia must be truly proud of such success, as we are given an opportunity to contribute to the process of implementing international supervisory standards."