MP Irakli Kovzanadze, Fiscal Committee Chair of the Parliament of Georgia, met with Koba Gvenetadze, Governor of the National Bank of Georgia (NBG), along with Archil Mestvirishvili and Papuna Lezhava, Deputy Governors of the NBG.
The working meeting held at the Parliament of Georgia was focused on the macroeconomic challenges of the country in the context of the COVID pandemic, the current position of the commercial banking sector, the economic growth of the country, exchange rate and inflation prospects, as well as the solvency and liquidity of the Georgian financial sector. The NBG Governor shared preliminary data on the commercial banking sector in 2020 with MP Kovzanadze.
According to the legislator, it is essential to accurately identify the risks in the commercial banking sector and pursue adequate banking supervision against the background of the economic contraction, even though the banking sector of the country met the risks caused by the pandemic, economic contraction and downfall with due preparedness.
“In collaboration with the NBG, the Parliament of Georgia duly prepared the banking sector of the country,” noted MP Kovzanadze. “The resilience of the financial system was conditioned by the reforms implemented towards this end over years, inter alia through deposit insurance system, pension reform, introduction of commercial bank resolution framework. The Law of Georgia on Investment Funds has tightened the requirements for capital adequacy and others. I believe that three components should be concurrently working soundly to endure the stability and sustainability of the banking sector: an adequate monetary policy, robust banking supervision and effective deposit insurance system.”
