The resolution fund is a fund that is used in case of emergency situations and which represents additional financial support for crises in the resolution process.

In December 2023, the Parliament of Georgia approved legislative amendments related to the resolution fund, according to which commercial banks are required to make ex-ante contributions to the resolution fund (ex-ante fund) in order to reach the target set by the law. Namely:

• The target of the fund: 3% of insured deposit;
• Contributions: banks should start contributioning from 2025;
• Time required to reach the target: 8 years (may be changed if the amount in the fund is used or the deposit insurance limit is increased);
• Methodology of contributions: in proportion to the share of assets of commercial banks in the system, considering the individual risk profile.

The ex-ante fund is administered by the National Bank of Georgia, which, according to the law, has the right to transfer the fund to the Deposit Insurance Agency for administration. Besides, the ex-ante contributions of commercial banks, the Temporary Public Funding (the so-called ex-post resolution fund) is also transferred in the resolution fund account and being utilized according to the established objectives. After comlpeting  the resolution regime, the state funds utilized through the resolution fund will be reimbursed by the operating commercial banks, under the established conditions and proportionality determined by the National Bank of Georgia.