National Bank of Georgia received two awards from Central Banking
the National Bank of Georgia received two awards for Risk Manager and
Transparency nominations in the framework of prestigious international
publication, Central Bankings Summer Meetings.
Transparency nomination includes three important components - education, targeting full range of stakeholders and communication across various platforms. Transparency is one of the top priorities for the NBG. It has been preserved and succeeded even in the times of Covid-19. Except for ensuring the price stability and facilitating sustainable economic growth in the country, main mandate of the NBG is to ensure the transparency of the macroeconomic policy and financial system regulation as well. In recent years, the NBG has paid special attention to increasing transparency and developing various communication channels with the public. It is noteworthy, that the NBG has launched the first financial education portal in Georgia - finedu.gov.ge, an excellent possibility to collect variety of educational resources created by various stakeholders at one place. Explaining monetary and financial policy decisions, communicating openly and continuously with financial market and general public, represent NBG's prior mission. This is what NBG's regular, transparent reporting and proactive communication serve, regardless of difficult or calm periods.
Every year Risk Manager award is presented to leading central banks that demonstrate excellence in Risk Management of FX reserves. Global recognition of NBG's achievements in FX reserve management field is a result of dramatic transformation of its reserves management function over the last decade. From a central bank with small reserves and simple instruments, NBG has evolved into skillful reserve manager with sophisticated investment strategies and top-notch infrastructure. Strategic partnership with WB treasury RAMP program was relied upon to support continuous capacity building. RAMP guidance was instrumental in designing and implementing leading reserve management practices, creating long term vision and reorganizing reserves management function. Accumulation and management of FX reserves is one of the most important functions of central banks. During times of market shock, FX reserves provide crucial support for domestic economy and financial sector. NBG prudently managed its reserves, prioritizing safety and liquidity over return, thus investing vast majority of funds in highly liquid financial instruments carrying little credit risk.
Today, the NBG Governor took part in Central Banking Summer Meetings as well. In his speech, Koba Gvenetadze stressed the importance of transparency in promoting financial stability. He talked about how does the level of transparency affect financial stability policy effectiveness, is there a need for higher level of transparency as central banks role and mandates have become broader and more complex, how can transparency help central banks to increase public support and promote financial stability, what are the risks and challenges in enhancing transparency and communication, etc. The representatives of global financial community and the managers of various central banks participated in the event. The presentation continued in question-answer mode.
The Central Banking Award is widely recognized in the international financial community and reflects the high reputation and successful activities of the participating banks.