The National Bank of Georgia assesses the risks of microbanks and their ability to manage these risks within the framework of the General Risk Assessment Program (GRAPE).

 

The assessment under GRAPE includes evaluating the level of risks of microbanks according to the following categories: credit risk, liquidity risk, market risk, operational risk, business model and profitability, macroeconomic environment, group structure, and corporate governance.

 

As a result of the assessment, the capital requirement of individual microbanks is determined within the framework of Pillar 2 (Net GRAPE Buffer), the level of supervisory attention regarding microbanks and risks, and recommendations in response to identified risks for microbanks.