02.Mar .2021 14:00

Kovzanadze: proper identification of bank risks is important against the background of the economic contraction

Kovzanadze: proper identification of bank risks is important against the background of the economic contraction
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The Chair of the Budget and Finance Committee, Irakli Kovzanadze held the meeting with the President of the National Bank, Koba Gvenetadze and the Vice-Presidents Archil Mestvirishvili and Papuna Lezhava.

The parties discussed the macro-economic challenges against the pandemic, situation in the bank sector, economic growth, GEL rate and inflation, as well as solvency and liquidity of the financial sector. Gvenetadze introduced the preliminary data of the bank sector for 2020.

According to Kovzanadze, the proper identification of bank risks and ensuring adequate oversight against the background of the economic contraction is important despite that the bank sector was prepared for the pandemic-related risks.

“The Parliament in cooperation with the National Bank prepared the bank sector. Sustainability of the financial system has been ensured by the reforming, including the deposit insurance system, pension reform, introduction of the frame resolution on the commercial banks, adoption of the law on Investment Funds, stricter requirements of the law etc. to ensure the stable and sustainable bank system and due operation of three components – adequate monetary policy, strict bank oversight, and effective deposit insurance system”, - he noted.