კონფერენცია

∘ Nino Zhorzhikashvili ∘
ASSESSMENT OF MACROPRUDENTIAL POLICY INSTRUMENTS DEVELOPED ON THE BASIS OF BASEL III STANDARDS AND THEIR EFFECTIVENESS FOR GEORGIA

Summary

Georgia is a small, open economy with a high rate of dollarization, a current account deficit and an increasing dependence on international financial flows, which makes it vulnerable to global economic and financial trends. Accordingly, the sensitivity of the Georgian economy to global and regional economic shocks and changes in global financial conditions is high. In addition to the above, the banking and financial sector has a fairly large share in the economy of Georgia, therefore financial stability is very important for the stability of the economy as a whole and its normal functioning. The banking and financial sector of Georgia is facing certain challenges, which require the implementation of well-organized, implemented and coordinated policies to promote financial stability. In this direction, special attention is paid to the practical implementation of tools developed on the basis of Basel standards, their effectiveness and monitoring process.

Keywords: macroprudential policy, Basel III, financial stability indicators, macroprudential instruments.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Nino Zhorzhikashvili ∘ ASSESSMENT OF MACROPRUDENTIAL POLICY INSTRUMENTS DEVELOPED ON THE BASIS OF BASEL III STANDARDS AND THEIR EFFECTIVENESS FOR GEORGIA Summary Georgia is a small, open economy with a high rate of dollarization, a current account deficit and an increasing dependence on international financial flows, which makes it vulnerable to global economic and financial trends. Accordingly, the sensitivity of the Georgian economy to global and regional economic shocks and changes in global financial conditions is high. In addition to the above, the banking and financial sector has a fairly large share in the economy of Georgia, therefore financial stability is very important for the stability of the economy as a whole and its normal functioning. The banking and financial sector of Georgia is facing certain challenges, which require the implementation of well-organized, implemented and coordinated policies to promote financial stability. In this direction, special attention is paid to the practical implementation of tools developed on the basis of Basel standards, their effectiveness and monitoring process. *Keywords*: macroprudential policy, Basel III, financial stability indicators, macroprudential instruments.