Overview
Georgia's National Bank has a historic legacy dating to May 24, 1919, when the independent Republic of Georgia established its first state bank under manager Yason Lordkipanidze. Following Soviet occupation, the contemporary National Bank of Georgia was re-established on December 25, 1991, succeeding the Georgian Republican Bank of the USSR following Georgia's independence from the Soviet Union. The legal status, functions, and powers of the Bank were codified through the Organic Law adopted in 1995.
The National Bank of Georgia serves as the integrated regulator and supervisor of Georgia's financial system, encompassing banking, securities, microfinance, and payment systems. The Bank maintains full independence from legislative and executive interference, enshrined in the Constitution of Georgia and the Organic Law on the National Bank.
Current Governor: Natia Turnava (as of 2025)
Key Leadership:
- Ekaterine Mikabadze - First Vice-Governor and Board Member
- Ekaterine Galdava - Vice-Governor and Board Member
- Nino Jeladze - Vice-Governor and Board Member
Headquarters: Tbilisi, Georgia
Status: Fully independent integrated financial supervisor with constitutional protections
Basic Identity
| Field | Value |
|---|---|
| Official Name (English) | National Bank of Georgia (NBG) |
| Official Name (Local Language) | National Bank of Georgia (NBG) |
| Acronym | NBG |
| Country | Georgia |
| Jurisdiction Level | National |
| Official Website | https://nbg.gov.ge/en/ |
| Official Website Language(s) | Georgian (primary), English (partial) |
| Headquarters | Georgia |
| Year Established | Not publicly documented |
| Current Status | Active |
Classification
| Field | Value |
|---|---|
| Entity Type | Central Bank |
| Control Layer | Layer 1 — Sovereign/Government Regulator |
| Legal Authority Level | Binding |
| Jurisdiction Level | National |
| Scope of Power | Licensing, Supervision, Enforcement, Rulemaking |
Inclusion Justification
| Field | Value |
|---|---|
| Why This Entity Is Included | Primary monetary authority with statutory powers over banking supervision, monetary policy, payment systems, and financial stability |
| Type of Influence | Direct |
| Exclusion Risk | Removes the foundational monetary and banking regulatory authority from the directory, making the jurisdiction's financial control structure incomprehensible |
What This Entity Oversees
Integrated Financial Supervision
The National Bank of Georgia serves as the single integrated regulator and supervisor of Georgia's financial system:
Banking Supervision
Supervised Entities:
- Commercial banks and banking groups
- Branches of foreign banks
- Specialized banking institutions
- Central depositories and settlement systems
- Payment system operators
Supervisory Framework:
- Capital adequacy requirements aligned with Basel III standards
- Liquidity coverage ratios and net stable funding requirements
- Asset quality and provisioning standards
- Large exposure and concentration limits
- Leverage ratio requirements
Risk-Based Supervision:
- Scheduled on-site inspections by risk assessment
- Offsite monitoring through regulatory reporting
- Stress testing requirements for systemic banks
- Recovery and resolution planning
- Cybersecurity and operational resilience standards
Prudential Standards and Requirements:
- Corporate governance and management quality assessment
- Audit and internal control requirements
- Related-party transaction restrictions
- Know-your-customer and customer due diligence
Securities and Capital Markets Supervision
Regulated Market Participants:
- Brokerage companies and investment firms
- Asset management companies and funds
- Securities registrars (independent)
- Central depositories and securities settlement systems
- Stock exchange operators
- Investment advisors
Securities Market Regulation:
- Licensing of securities firms and advisors
- Market conduct and fair dealing requirements
- Prospectus and disclosure requirements for public offerings
- Insider dealing and market manipulation prevention
- Portfolio management and custody requirements
Capital Markets Infrastructure:
- Registry and settlement system oversight
- Trade reporting and transparency requirements
- Clearing and settlement system supervision
Insurance and Non-Bank Financial Services
Insurance Regulation:
- Insurance company licensing and supervision
- Capital adequacy and reserve requirements
- Policyholder protection arrangements
- Product approval and disclosure requirements
Microfinance Supervision:
- Microfinance organization licensing and regulation
- Capital and liquidity requirements
- Consumer protection standards
- Capacity building and financial inclusion support
Other Non-Bank Entities:
- Non-bank deposit institutions
- Credit unions and cooperative lending
- Currency exchange offices
- Loan issuance entities
- Virtual asset service providers (VASPs)
The National Bank of Georgia implements comprehensive anti-money laundering and counter-terrorism financing supervision:
Supervisory Authority:
- NBG supervises obliged entities for AML/CFT compliance:
- Commercial banks and non-bank deposit institutions
- Currency exchange offices
- Microfinance organizations
- Brokerage companies and securities firms
- Loan issuance entities
- Securities registrars and investment funds
- Virtual asset service providers (VASPs)
- Micro-banks
- Payment service providers
Regulatory Framework:
- 2018 NBG Supervisory Framework on Combating Money Laundering and Terrorism Financing
- Establishes risk-oriented supervisory processes and principles
- Customer due diligence and beneficial ownership requirements
- Suspicious transaction reporting obligations
- Record-keeping and documentation standards
Dual AML Regulatory Structure:
- NBG Role: AML/CFT supervision of banking, non-bank deposits, securities, microfinance, and capital markets sectors
- Financial Monitoring Service (FMS) Role: Financial intelligence unit receiving and analyzing suspicious transaction reports; primary AML oversight coordinator
- VASP Oversight: NBG serves as licensing authority with primary VASP oversight; FMS coordinates broader FIU functions
Risk Assessment:
- National Risk Assessment for money laundering and terrorism financing
- Risk-based AML supervisory approaches
- Sector-specific risk profiles and monitoring
International Alignment:
- FATF Mutual Evaluation Report (2020)
- MONEYVAL compliance assessment
- Alignment with EU AML Directive standards
The National Bank of Georgia maintains financial system stability through:
Macroprudential Policy:
- Systemic risk identification and monitoring
- Countercyclical capital buffer implementation
- Sector-specific risk measures (real estate concentration, FX exposure)
- Policy coordination with prudential supervision
Stress Testing and Resilience:
- Regular stress testing of banking system
- Scenario analysis for systemic risks
- Capital stress scenarios and recovery planning
- Liquidity stress assessment
Banking System Monitoring:
- Consolidated supervision of banking groups
- Cross-border risk assessment
- Interconnectedness analysis
- Early warning systems for financial distress
Lender of Last Resort:
- Emergency liquidity facilities for solvent institutions
- Collateral framework for central bank lending
- Liquidity management during financial stress
- Banking system stability maintenance
Microfinance Regulation:
- Licensing and supervision of microfinance organizations
- Capital and liquidity requirements scaled for micro-institutions
- Consumer protection and transparency standards
- Financial inclusion objectives balance with prudential safety
National Bank's First Microbank License:
- Recent issuance of first microbank license reflecting regulatory evolution
- Enhanced services for underserved populations
- Integration of microfinance with banking system oversight
Financial Inclusion Initiatives:
- Expanded access to credit and savings services
- Rural banking development
- Digital financial services accessibility
- Consumer protection emphasis
Regulatory Powers
The National Bank of Georgia maintains comprehensive enforcement powers:
Sanctioning Authority:
- Fines and penalties for regulatory violations
- License restrictions or suspension
- Remedial action requirements
- Cease-and-desist authority
Supervisory Tools:
- Corrective action orders for compliance failures
- Mandatory capital injections or restructuring
- Management changes and governance interventions
- Temporary administration authority for distressed institutions
Compliance Framework:
- Regular compliance audits and inspections
- Risk-based enforcement approach
- Public disclosure of enforcement actions
Regulatory Role and Function
| Role | Description |
|---|---|
| Primary Role | Monetary policy formulation and implementation; banking system supervision |
| Licensing Role | Licenses and authorizes banking institutions and payment service providers |
| Supervisory Role | Prudential supervision of banks and financial institutions |
| Enforcement Role | Enforcement of banking laws, regulations, and prudential standards |
| Payment Systems Oversight Role | Operation and oversight of national payment and settlement systems |
| AML / CFT Role | AML/CFT supervisory authority for banking sector |
Legal Foundation
The National Bank of Georgia operates under comprehensive constitutional and legislative frameworks ensuring operational independence:
- Constitution of Georgia - Provides constitutional independence protections
- Organic Law of Georgia on the National Bank of Georgia (adopted 1995, as amended)
- Law of Georgia on Payment Systems and Payment Services (comprehensive framework)
- Law on Payment Services (regulation of payment service providers)
- Law on Securities Market Regulation (capital markets supervision)
- Law on Insurance (insurance sector supervision)
- Law on Microfinance Organizations (microfinance regulation)
- Law on Banks (banking regulation and supervision)
The NBG's independence is constitutionally protected against legislative or executive interference, ensuring that monetary policy and financial regulation remain insulated from political pressures. The 2018 Supervisory Framework codifies AML/CFT risk-oriented processes and supervisory principles.
Licensing and Authorization Relevance
The National Bank of Georgia (NBG) is a key licensing authority in Georgia's financial system:
| License Type | Description |
|---|---|
| Banking License | Authorization to conduct deposit-taking and lending activities |
| Payment Service Provider License | Authorization to provide payment services and operate payment systems |
| Foreign Exchange Dealer License | Authorization to conduct foreign exchange dealing and brokerage |
| Bureaux de Change License | Authorization to operate money changing services |
| Money Transfer License | Authorization to provide money transfer and remittance services |
| Electronic Money Issuer License | Authorization to issue electronic money instruments |
The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.
Payments and Money Movement Relevance
The National Bank of Georgia implements inflation-targeting monetary policy framework:
Policy Framework:
- Inflation target of 2% ± 1.5 percentage points
- Base rate (policy rate) as primary operational tool
- Forward guidance and communication framework
Monetary Policy Mechanism:
- Standing facilities (deposit and lending facilities) for liquidity management
- Open market operations for liquidity adjustment
- Reserve requirement framework
- Lari exchange rate management within flexible framework
Economic Outlook and Policy Coordination:
- Coordination with Government on fiscal policy
- Support for sustainable economic growth within price stability mandate
- Integration of financial stability concerns into monetary policy
2025-2027 Monetary Policy Directions:
- Parliament approval of main monetary and foreign exchange policy directions annually
- 2025-2027 directions approved by Parliament with policy priorities articulated
- Supervisory strategy 2023-2025 implemented with planned updates
The National Bank of Georgia operates and regulates comprehensive payment system infrastructure:
Instant Payment System (IPS)
Purpose and Development:
- Electronic retail payment solution available 24/7/365
- Instant fund execution with immediate availability to recipients
- Launched as modern alternative to traditional clearing networks
- Payment clearing in Georgian lari (GEL)
System Features:
- Instant settlement upon payment execution
- Participant network including commercial banks and non-bank payment service providers
- Interoperability with existing payment infrastructure
- Mobile accessibility and user-friendly interfaces
International Integration:
- Built in compliance with international payment standards
- SEPA (Single Euro Payments Area) compatibility planned
- Facilitates Georgia's integration into European payment systems
- Alignment with SEPA schemes and standards
- Support for future Georgia SEPA membership
Launch Timeline:
- Implementation planned for second half of 2026
- Regulatory framework finalization underway
- Participant onboarding and testing in progress
BOG Pay Ecosystem
Bank of Georgia Payment Infrastructure:
- Commercial bank (Bank of Georgia) operates proprietary digital payment ecosystem
- Mobile and web-based payment platforms
- Integration with national payment systems
- Support for various digital payment methods
Digital Payment Services:
- Bank of Georgia mobile application
- Instant domestic transfers
- International payment capabilities
- Digital wallet services
Payment System Supervision
Regulatory Authority:
- NBG maintains licensing authority over payment system operators
- Oversight of system operators and payment service providers
- Risk management and operational resilience requirements
- Participation and access rules for financial institutions
- Fraud prevention and security standards
Cybersecurity and Resilience:
- Business continuity and disaster recovery requirements
- Data protection and encryption standards
- Cyber incident reporting and response protocols
Payment Systems Governed or Overseen
The NBG operates and/or oversees the national payment and settlement infrastructure of Georgia. Specific systems include:
| System Name | Relationship Type | Operator | Key Details |
|---|---|---|---|
| RTGS (Real-Time Gross Settlement) System | Direct operator | National Bank of Georgia | Launched December 2010; processes high-value and low-value transactions in real time with immediate finality; settlement in GEL; both individual and bulk submission processing |
| Instant Payment System (IPS) | Direct operator (under development) | National Bank of Georgia with World Bank partnership | 24/7 electronic retail payment infrastructure; enables immediate fund availability to recipients; supports mobile apps and QR code payments; covers commercial banks and non-bank payment service providers; under final deployment to public |
| RTGS System Upgrade Project | Direct operator | National Bank of Georgia | Modernization of existing RTGS infrastructure; ongoing technical upgrades |
| Card Payment Systems | Regulated operators | Georgian Card and United Financial Corporation | Two primary card processing systems handling majority of card transactions; process local and international cards; participants include commercial banks, MFIs, and registered payment service providers |
| Bank Processing Centers | Bank-operated | Liberty Bank, Cartu Bank processing centers | Property and structural units of banks; Liberty Bank center also provides services to other payment service providers |
| Securities and Settlement System | Direct operator | National Bank of Georgia | Settlement of securities transactions; clearing center coordination for international transactions |
Relationship to Other Regulators
International Monetary Fund (IMF):
- Member of the International Monetary Fund
- Participation in Article IV consultations
- Technical assistance cooperation on financial sector development
- FSAP (Financial Sector Assessment Program) participation
European Integration:
- Single Euro Payments Area (SEPA) integration pathway
- Harmonization with EU payment regulation standards
- European Bank Coordination Initiative participation
- EU technical assistance programs
World Bank:
- Financial Sector Assessment Program (FSAP)
- Technical assistance on supervisory frameworks
- Capacity building support
- Financial inclusion partnerships
Regional Cooperation:
- Caucasus regional central bank coordination
- CIS financial system cooperation
- Payment system regional integration
- Currency cooperation frameworks
Bilateral Relationships:
- Cooperation with major central banks
- Regulatory coordination on banking group supervision
- Cross-border payment system arrangements
Geography and Jurisdiction Notes
| Field | Value |
|---|---|
| Applies Nationwide | Yes |
| Applies at State or Sub-National Level Only | No |
| Cross-Border or Regional Reach | No |
| Special Territorial Notes | National jurisdiction within Georgia |
Important Departments and Divisions
| Division / Department | Primary Function |
|---|---|
| Banking Supervision Department | Prudential supervision of banks and deposit-taking institutions |
| Monetary Policy Department | Formulation and implementation of monetary policy |
| Payment Systems Department | Operation and oversight of payment infrastructure |
| Financial Stability Department | Systemic risk monitoring and macroprudential policy |
| Foreign Exchange Department | FX reserves management and exchange rate policy |
| AML/CFT Compliance Unit | Anti-money laundering supervision and enforcement |
| Research and Statistics Department | Economic research and data collection |
Key Public Resources
Headquarters:
- National Bank of Georgia
- Address: Tbilisi, Georgia
- Website: https://nbg.gov.ge/en/
Governor's Office:
- Natia Turnava, Governor
- Official correspondence through main website
Regulatory Divisions:
- Banking Supervision Department
- Capital Markets and Securities Supervision
- Payment Systems Regulation
- AML/CFT Supervision
- Financial Stability Division
Public Information:
- Media and communications office
- Regulatory news and announcements
- Financial stability reports and assessments
Notes on Naming and Language
| Field | Value |
|---|---|
| Preferred English Rendering | National Bank of Georgia (NBG) |
| Official Local-Language Rendering | National Bank of Georgia (NBG) |
| Primary Language | Georgian |
| English Availability | Partial |
| Official Website Language(s) | Georgian (primary), English (partial) |