Natia Turnava, Acting Governor of the National Bank of Georgia, participated in the International Association of Deposit Insurers (IADI) conference.
Industry representatives and experts from various countries attended the conference, aimed at raising awareness of the benefits of the deposit guarantee scheme for the Georgian market. The event featured discussions on the achievements and challenges of deposit insurance systems worldwide.
In her speech, Natia Turnava emphasized the crucial role of the deposit insurance system in managing financial stress, protecting depositors, and restoring market confidence. She highlighted the significant progress Georgia has made in developing an effective deposit insurance system over the past decade, noting that the total assets of the system now exceed Georgia's annual GDP.
"Our deposit insurance system is well-capitalized and maintains solid liquidity buffers, with strong profitability and good asset quality. Even in severe stress scenarios we test, our banks manage to maintain viability and continue providing financial services," Turnava stated.
Turnava also spoke about the National Bank of Georgia's supervisory and resolution functions, which make the NBG the resolution authority in the country. She explained that the resolution framework is based on the European BRR Directive and is principally compliant with it, with ongoing efforts to achieve full compliance with the EU framework.
"In addition, we are collaborating with the Deposit Insurance Agency to strengthen our framework, as its role will become increasingly important in the future," Turnava concluded.
