IMF Staff Country Reports

Georgia: Financial Sector Assessment Program-Technical Note-Financial Safety Net, Resolution and Crisis Management

Publication Date:

September 30, 2021

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Since the prior FSAP the authorities have comprehensively updated the legal, policy and procedural framework for failing bank resolution. In 2019 both the NBG and Banking Laws were amended to provide the authorities with powers to resolve banks that in the past might have been deemed too-big-to-fail; this eventuality is now greatly diminished. In 2017 a Deposit Insurance System Law was adopted to provide protection to natural person depositors when a bank fails and is liquidated. In 2020 the NBG published a series of rules specifying its policies and procedures for the use of its new powers, and jointly with the MoF published regulations addressing the use of temporary public funding to mitigate the potential systemic implications of bank failures.

Series:

Country Report No. 2021/223

Subject:

Bank resolution Bank resolution framework Bridge bank Crisis management Crisis resolution Financial crises International organization Monetary policy

Frequency:

regular