Macroprudential Policy Strategy
The National Bank of Georgia within the financial stability framework develops Macroprudential Policy Strategy. The Strategy lays down the cornerstones for implementing macroprudential policy in Georgia with a view to fostering the decision-making process as well as communication and accountability to the general public. The NBG’s Macroprudential Policy Strategy closely follows the European Systemic Risk Board’s (ESRB/2013/11) recommendation and the best international practice and it is consistent with EU directives.
The ultimate objective of the NBG’s macroprudential policy lies in making a material contribution to safeguarding the stability of the Georgian financial system as a whole. In order to make macroprudential policy operational, transparent and accountable, the NBG identifies intermediate objectives. In line with the ESRB/2013/1 recommendation and taking into account Georgia’s specifics, the NBG has identified five intermediate objectives of macroprudential policy:
These intermediate objectives are mapped into corresponding indicators and macroprudential policy instruments, which are necessary to achieve these objectives. Thus, the strategy will support achieving the macroprudential policy’s ultimate objective: financial stability in Georgia.