Georgia: Technical Assistance Report-Operationalizing the New Bank Recovery and Resolution Framework
IMF Staff Country Reports, March 22, 2023
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- Georgia: Technical Assistance Report-Operationalizing the New Bank Recovery and Resolution Framework
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Bibliographic details
- Published: March 22, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400238406.002
Macro-financial context and risks
- The economic environment has improved, as coronavirus disease, 2019 has been brought under control.
- New challenges are emerging, including:
- Economic growth is strong.
- Interest rates have risen.
- The exchange rate is historically high.
- Credit maintains a high growth rate.
- Increasing international commodity prices have contributed to rising inflation and inflationary expectations.
Mission activities and analytical tools
- The mission reviewed the benchmarking analysis and acknowledged the significant work done by the resolution function.
- The benchmarking tool:
- Allowed a clear comparison of recovery options and scenarios among the different recovery plans.
- Will be important for the assessment while providing banks with useful feedback.
- The mission delivered a simulation to help the authorities’ benchmark their progress on resolution planning and preparedness.
Findings
- Benchmarking analysis is useful for comparing recovery options and scenarios across different recovery plans.
- The resolution function has completed significant preparatory work recognized by the mission.
- Simulations can operationally assist authorities in assessing resolution planning and preparedness.
Policy recommendations and operational advice
- Further improvement to the benchmarking tool is suggested by the mission.
- Keep the benchmarking instrument simple and scalable.
Content in this bundle
- 1geoea2023002 - Preface