Money Market

    The interbank deposit/credit market represents the money market where banks trade with each other with short-term excess liquidity. This market is an area of high interest for the National Bank of Georgia because it plays a crucial role for the monetary policy transmission mechanism. The NBG influences rates on the interbank market by publicizing its monetary policy stance and using policy instruments.


    Money Market Indices play a key role in the financial system, banking system and the economy. They are used for pricing different financial instruments such as: Floating Rate Bonds, Bank Loans and Derivatives. Money market interest rate benchmarks allow for better pricing transparency, risk allocation between market participants and interest rate risk management. As such, they support the development of more efficient and liquid markets and thereby a stronger and more resilient financial system.


    Money market indices are widely used in the global financial system as benchmarks for a large volume and broad range of financial products and contracts. The reform of TIBR follows the global trend whereby in recent years domestic interest rate benchmarks have been undergoing fundamental reviews and reforms to improve their robustness, transparency and governance, whilst focusing on wider use of reformed overnight interest rate benchmarks (the so called ‘Risk Free Rates' or ‘RFRs') such as SONIA or EONIA.


    Starting August 2018 reformed TIBR Index was established by NBG as a risk free overnight rate benchmark. Having a credible and transparent index reflecting where banks can manage their overnight interest rate risk is of great importance for the development of the GEL money and capital markets. Being strongly grounded in interbank transactions, the reformed TIBR is a robust interbank benchmark that market participants can readily start to use in cash and derivatives contracts.


    As of now floating rate GEL instruments were indexed either to the NBG CD rate or to the NBG refinancing rate. Both rates are depend on the central bank's monetary policy and may either disappear or not reflect in the long run where banks can manage their short term liquidity and interest rate risk.


    For that reason, it was preferable for the market to index transactions to an interbank market benchmark that will support the development of term floating rate transactions. Hence starting March 14, 2019 new Term TIBR indices were introduced, which are rates calculated using backward looking term rate compounding methodology linked to the historical TIBR Index. NBG hopes that new Term Indices will replace existing indices as reference rates for pricing Money Market and derivative instruments in nearest future.


    The reformed TIBR methodology includes TIBR Index and TIBR Index linked Term TIBR Indices Calculation and publishing rules, as well as its control mechanisms. The methodology was introduced with the assistance of European Bank for Reconstruction and Development (EBRD) and in close partnership with Market Participants.


    The reformed TIBR methodology is in line with that adopted by similar RFRs. TIBR is based on actual deals, which will eventually increase its credibility. Additional benefit to the index is the fact that information gathering and calculation will be done by NBG. Indices calculation methodology will be regularly reviewed to ensure that the methodology continues to be adequate.


    The National Bank of Georgia (NBG) publishes money market TIBR Index and TIBR Index linked Term TIBR Indices daily at 9 am on its web page. Methodology and historical data will be available on this page, as well as on the following web page:;




    List of participants joined REPO Master Agreement 



    N  Bank Name   Joining Date
    1 JSC "Silk Road Bank"  7-Jul-17
    2 JSC "BasisBank" 10-Jul-17
    3 JSC "Bank of Georgia" 11-Jul-17
    4 JSC  "Cartu Bank" 11-Jul-17
    5 JSC "Credo Bank" 12-Jul-17
    6 JSC "TBC Bank" 13-Jul-17
    7 JSC "VTB Bank Georgia " 13-Jul-17
    8 JSC "Terabank" 14-Jul-17
    9 JSC “Pasha Bank Georgia” 18-Jul-17
    10 JSC "Liberty Bank"  19-Jul-17
    11  JSC “ProCredit Bank”   2-Aug-17
    12 JSC "Ishbank Georgia" 11-Sep-2017