To ensure the involvement of stakeholders in the development of the supervisory strategy, the National Bank publishes the initial draft of the Supervisory Strategy document for 2023-2025 years.

In order to ensure public and financial sector engagement in determination of new supervisory priorities and with an aim to receive their opinions, the National Bank has already published a questionnaire regarding the Supervisory Strategy in 2022 (Press release; Questionnaire). Through the questionnaire, representatives of both the private and civil sectors presented opinions. Stakeholders highlighted several important issues, including:

• Improving the risk management framework at organizational level (reflected in priorities I and III)
• Cybersecurity and data protection (reflected in priorities I and III)
• Capitalization and implementation of internal capital and liquidity adequacy assessment programs (reflected in priorities I and IV)
• Preparedness of organizations for external shocks (reflected in priority I)
• Ensuring competitive environment in the financial sector (reflected in priority II)
• Promoting attractive investment environment (this is facilitated by a combination of all supervisory priorities)
• Implementation of Open Banking (reflected in priority III)
• Promoting digitalization of the financial sector (reflected in priority III)
• Greater involvement of representatives of the financial sector in the development of regulatory acts (reflected in priority V) and others

Based on the analysis of international practices and trends, the opinions received from the stakeholders, the recommendations of international partners, the obligations undertaken and the needs identified within the supervisory mandate, the National Bank determined the following priorities of the 2023-2025 Supervisory Strategy:

1. Improvement of financial sector risk management framework and proactive response to outcomes;
2. Promotion of competition in the financial sector;
3. Promotion of financial innovation and development of supervisory technologies;
4. Approximation to international standards;
5. Strengthening the supervisory function of the National Bank and increasing transparency.

Following supervisory priorities are based on and are in full compliance with the supervisory mandate of the National Bank, the objectives and the main directions of supervision and regulation of the activities of the financial sector approved by the Board of the National Bank (please see here).

The National Bank continues to work on the supervisory strategy for 2023-2025 years, including each supervisory priority, relevant activities and action plan. You can find initial draft document of the supervisory strategy at the following link.

Representatives of the financial sector and any interested person have the opportunity to send opinions prior to May 12, 2023 to the e-mail: supervisorystrategy@nbg.gov.ge.  

After the completion of the public consultation, the document will be approved and published in its final form.