Supervision

    What is the National Bank mandate in terms of financial sector supervision? 

     

    According to the Organic Law of Georgia on the National Bank of Georgia, the NBG, as part of the financial sector supervision mandate, is tasked to promote the financial stability and transparency of the financial sector, and to protect the rights of consumers and investors. To accomplish this task, the National Bank promotes the stable and efficient functioning of the financial system, the creation of a competitive environment, the systemic risk control and risk reduction.

     

    Which entities does the National Bank supervise?

     

    The National Bank's supervisory mandate extends to the following entities: commercial bank, banking group, non-bank depository institution, brokerage, independent securities registrar, asset management company, central depository, specialized depository, founder of non-government pension scheme, stock exchange, microfinance institution, payment service provider, accountable enterprise, currency exchange bureau, credit information bureau and lending entities.

     

    What does the supervision entail?

     

    The National Bank has developed an effective supervisory regime for the listed institutions, that gives due consideration to the risks and specifics of each financial institution, and defines the supervisory requirements to ensure sustainable and efficient functioning of both the supervised entities and the financial sector in general.

     

    The supervisory requirements for each sector are based on the international best practice and reflect the individualities and context of the sector and country. 

     

    How is the National Bank’s supervisory function assessed?

     

    The joint Mission of the International Monetary Fund and the World Bank under the Financial Sector Assessment Program (FSAP) perform the scheduled assessment of the NBG’s financial sector oversight function. This usually includes assessment of the stability and soundness of the financial sector, the NBG reforms, development and growth prospects, and recommendations for further development and improvement of the National Bank's supervisory framework.

     

    The work of the National Bank is additionally assessed by international organizations such as the International Monetary Fund (IMF), the European Bank for Reconstruction and Development (EBRD), rating agencies (Moody's, Fitch Ratings), the World Bank, the Asian Development Bank and others.