Acting National Bank Governor claims Georgia’s banking system “one of most stable in Europe”

Georgia’s banking system is “one of the most stable in Europe” and there is “nothing critical” that could “threaten” the country’s financial sector, Natia Turnava, the Acting Governor of the National Bank of Georgia, claimed on Saturday while evaluating the recent price changes of Georgian banks’ shares on the London Stock Exchange.

In an interview with Imedi TV channel, Turnava noted the agitation on the price changes was “largely artificial and there is no real economic reason behind it” and as she explained, the price of bank shares on the London Stock Exchange was “characterised” by “volatility”.

For example, in February 2022, when the Russia-Ukraine war started, [...] there was a 40 percent drop in stock prices, and a more immediate drop than we’ve seen in these few days, and it didn’t shake our banking system either, because it [Georgia’s banking system] is very strong, well capitalised, [with] sufficient liquidity buffers, [and] profitable”, she emphasised.

Turnava pointed out that short-term price fluctuations would not have an impact on the solvency of Georgia’s banking system and its resilience to “shocks”, also stressing that Georgian banks had liquid assets of ₾16.7 billion (about $6 bln) and could “deal with any serious crisis”.