The Securities Market Supervision Department of the National Bank of Georgia held a working meeting with representatives of leading audit firms operating in the country.

The discussion focused on the role of audit firms in the process of issuing commercial covered (mortgage-backed) bonds. Under the existing regulatory framework, a commercial bank issuing covered bonds is required to appoint an audit firm responsible for monitoring the assets pledged as collateral for the bonds. According to the law, the collateral monitoring entity must be an audit firm authorized to conduct audits of public interest entities.

During the meeting, representatives of audit firms had the opportunity to receive additional information about the functions and responsibilities of auditors in relation to the issuance of covered bonds by commercial banks. Such meetings are expected to support both market participants commercial banks and audit firms in the process of introducing this new financial instrument to the capital market.

It is noteworthy that the preparatory phase for the introduction of covered bonds in Georgia has entered its final stage, based on which commercial banks will soon be able to issue this new type of security on the Georgian market.