Questionnaire on the priorities of the supervisory strategy of the National Bank for 2023-2025

The National Bank is developing a three-year (2023-2025) supervisory strategy document, the purpose of which is to set strategic priorities and plan the activities necessary for their implementation, in order to fulfill the supervisory mandate of the National Bank, taking into account its mission, vision and values.
 
In this process, your views on the supervisory priorities and challenges of the National Bank are extremely important. In this regard, please share your views on all or any of the questions below.
 
Comments can be submitted until August 31, 2022. In case of additional questions or difficulties, please contact us: SupervisoryStrategy@nbg.gov.ge.
1.Please, indicate the first and last name/name of the organization:
2.What do you consider to be the key current and emerging risks and issues that the National Bank should consider in the development of the Supervisory Strategy Document for 2023-2025?

Please consider that the supervisory strategy includes the strategic priorities and visions on issues within the scope of direct supervisory mandate of the National Bank.

Please take into account, that objective of the National Bank is to facilitate the financial stability and transparency of the financial sector and protect the rights of consumers and investors. In order to fulfill this objective, the National Bank is obliged to promote the stable and effective functioning of the financial system, the establishment of a competitive environment, the control of systemic risk and the reduction of potential risks.

The National Bank has full authority to supervise the activities of commercial banks, banking groups, non-bank depository institutions, microfinance organizations, independent securities registrars, brokerage companies (except insurance brokers), stock exchange, central depository, specialized depository, asset management companies, accountable enterprises, currency exchange offices, investment funds, payment system operators, payment service providers, credit information bureaus and loan issuing entities.

A prudential supervisory regime is oriented at sustainable functioning of the entire financial system. This does not imply inevitable avoidance of bankruptcy of each institution in the financial system; instead, it aims at timely identification of risks and threats to the bankruptcy and maximum mitigation of negative effects on stable functioning of the financial system as a whole, by taking appropriate measures.
3.In the context of the functions and supervisory mandate of National Bank, what do you consider the main priorities should be of the supervisory strategy for 2023-2025?

Please be reminded, that the purpose of the supervisory strategy document is to set strategic priorities and plan the activities necessary for their implementation, in order to fulfill the supervisory mandate of the National Bank, taking into account its mission, vision and values.

In terms of the supervision of the financial sector, the objective of the National Bank of Georgia, defined by law, is to facilitate the financial stability and transparency of the financial sector and protect the rights of consumers and investors. Accordingly, the supervisory strategic priorities should serve the fulfillment of the mentioned mandate of the National Bank.
4.Are there any other considerations that you think the National Bank needs to take into account in the development of the supervisory strategy for 2023-2025?  

Please consider that in 2020-2022, the National Bank conducted its activities taking into account the following supervisory priorities:

1. Strengthening the corporate culture that encourages leadership and initiatives;
2. Strengthening the cooperation with the stakeholders;
3. Facilitation of stable functioning of the financial sector;
4. Approximation to international standards;
5. Development of the ecosystems for sustainable financial technologies.

For additional information, please check the 2020-2022 Supervisory Strategy and its updates and the recommendations of 2021 Financial Sector Assessment Program (FSAP).