The National Bank of Georgia (NBG) continues to strengthen the banking sector’s resolution framework and publishes the 2025 financial statements of the Resolution Fund. It is noteworthy that the NBG has prepared financial information on the Resolution Fund for the first time, and this represents a fully independent document from the NBG’s own financial statements.

The Resolution Fund is one of the key components of the framework for the recovery and resolution of commercial banks. Established in 2020 to finance the bank resolution process, the Fund aims to mobilize the necessary financial resources, where the relevant legal grounds exist, in a way that mitigates systemic risks and reduces the need to use taxpayers’ resources.

Until December 2023, the Resolution Fund operated solely as an ex-post mechanism, meaning that, in the event resolution became necessary, funds allocated under temporary state financing would be transferred to the Fund. Following legislative amendments introduced in December 2023, commercial banks began making ex-ante, or advance, contributions to the Resolution Fund starting from 2025.

The Resolution Fund is a current account opened at the National Bank of Georgia and does not constitute an independent legal entity. The Fund’s target level is set at 3% of the total volume of insured deposits, with this level expected to be reached over an 8-year period by 2033.

The annual contribution amount payable by commercial banks to the Resolution Fund is determined based on year-end data, taking into account each bank’s share of assets and individual risk profile.

The Resolution Fund is administered by the National Bank of Georgia, while the investment of the Fund’s resources is carried out by the Deposit Insurance Agency, in accordance with Georgian legislation and the agreement concluded between the NBG and the Deposit Insurance Agency, and in line with the principles of safety and liquidity.

It should be noted that Georgia’s banking sector remains stable, well-capitalized, and continues to maintain strong liquidity buffers and profitability.