Financial Soundness Indicators for Financial Sector Stability in Georgia
Asian Development Bank | September 2015
Abstract
Georgia is a country with one of the highest costs of finance in developing Europe and Central Asia, reflected
in the large interest spreads and a high risk premium on private loans. With support from the Investment
Climate Facilitation Fund under the Regional Cooperation and Integration Financing Facility, this report
provides a broad and comprehensive overview of the Georgian financial sector’s health and the challenges
facing the financial sector in Georgia. Over medium-term policy actions, the report recommends facilitating
property registration, improving credit information-sharing mechanism, ensuring security of bank deposits,
and legislating improvements in reporting standards for firms as means to increase domestic savings, reduce
borrowing cost, and improve the credit risk. Over the long run, the government needs to pay particular
attention to diversifying the industrial base of the country, setting clear development goals to encourage
banks to finance innovation, and creating a solid legal base for developing capital markets as an alternative
source of firms’ financing.
Citation
Asian Development Bank. 2015. Financial Soundness Indicators for Financial Sector Stability in Georgia. © Asian Development Bank. http://hdl.handle.net/11540/5148. License: CC BY 3.0 IGO.PDF ISBN
978-92-9257-088-0
Print ISBN
978-92-9257-087-3
Keywords
Urban Development Finance
Regional Development Finance
Project Finance
Financial sector
Financial soundness indicators
Encouraged indicators
Economic development
International Financial Market
Financial Aspects
Project Impact
Local government
Government
Economic and Social Development
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Citable URI
http://hdl.handle.net/11540/5148Metadata
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