Overall stability assessment -- Overview of the financial system and financial intermediation -- The banking system -- Legal framework -- Payment and settlement systems -- Capital markets -- Corporate governance -- Summary of policy recommendations -- Observance of Basel core principles for effective banking supervision -- Observance of monetary and financial policies transparency codes -- Observance of CPSS core principles for payment systems -- IAIS insurance supervisory principles -- Observance of OECD corporate governance principles summary assessment
Summary
The Georgian financial system is small by international standards and by comparison with countries in the region. The vulnerabilities and policy challenges in the Georgian financial system are closely linked to the transitional stage of the economy. The legal framework governing the financial sector needs improvement. The assessment of compliance with the Basel Core Principles (BCP) for Effective Banking Supervision (EBS) found that while substantial advances in bank supervision have occurred during the past two to three years, there are several areas in need of improvement
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Cover title
Prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country
