US State Department Commends National Bank of Georgia

US State Department Commends National Bank of Georgia

18 July, 2024

In its latest report on Georgia's investment environment, the US State Department has positively evaluated the National Bank of Georgia's activities. The report reviews Georgia's investment climate, economic situation, and monetary and fiscal policies. It emphasizes the country's focus on maintaining a low deficit, low inflation, and a floating exchange rate.


The report highlights the National Bank of Georgia's effective monitoring of financial sanctions. It states:


"For proper and efficient monitoring of sanctions’ compliance by the financial intuitions, the NBG has established a new unit which is responsible for elaboration of respective methodological guidelines for the financial intuitions on international sanctions’ compliance and assists representatives of financial sector to understand and fulfill all the requirements envisaged by the sanctions’ regimes. Compliance with international financial sanctions is systematically checked during the onsite inspections of financial institutions."


Additionally, the report praises the supervisory policies of the National Bank of Georgia, which have enabled the financial sector and the banking system to successfully cope with global challenges. The report notes:


"The banking system is stable, well capitalized, liquid, and profitable.  The financial sector maintains solid capital and liquidity buffers against potential threats.  The share of non-performing loans is declining.  Georgia’s banking supervision practices and regulations have significantly progressed and are largely in line with Basel/EU directives."