A meeting of the Interagency Committee on Financial Stability was held today to discuss issues related to financial stability.

The Committee was established in 2020 on the basis of the Organic Law on the National Bank of Georgia, and its members include the Minister of Finance of Georgia (Chairman of the Committee), Governor of the National Bank of Georgia, the heads of the Deposit Insurance Agency of Georgia and the Insurance State Supervision Service of Georgia.

The Committee is tasked to coordinate between agencies to promote the stable functioning of the financial system. The meeting discussed the recent dynamics of financial stability indicators and the current issues of the resolution and recovery framework.

The Committee members talked about ways to develop the resolution framework and approximate it with European practice, while recapping the actions taken. The discussion focused on the establishment of the minimum requirement for own funds and eligible liabilities (MREL) for systemically important banks, as per the decision of the Financial Stability Committee of the National Bank of Georgia of May 31 of this year. The members also discussed the scheduled legislative changes related to the resolution fund, which involves commercial banks making advance contributions to the fund to promote financial stability.

In addition, the Committee members discussed the status of implementation of the recommendations of the International Monetary Fund and the World Bank and discussed future actions.