The valuation involves three types of valuation of assets and liabilities of the commercial bank and the branch of the foreign bank in accordance with the rule approved by the order №128/04 of the President of the National Bank of Georgia dated June 29, 2020 “On the Approval of the Rule For the Valuation of the Assets and Liabilities of a Commercial Bank for the Purposes of Resolution”. Specifically, there are three types of valuation:
The goal of the valuation is to facilitate the implementation of the regulations defined by the legislation of Georgia, which is related to the decision to introduce the commercial bank resolution regime defined by the current legislation of Georgia.
The valuator can be an independent individual, or legal entity (including the professional services company/audit firm), and a competent employee of the National Bank of Georgia, who performs only an interim valuation.
In this regard, memorandums of understanding (MoUs) were signed in 2023 between the National Bank of Georgia and five leading external valuation firms.