Financial Soundness Indicators for Investment Climate Assessment – Phase 2
Status: Complated
Project Milestones: Start date: 01.10.2013 End Date: 30.05.2014

The purpose of the Financial Soundness Indicators for Investment Climate Assessment is to present a birds-eye view of Georgia’s financial system, its’ standing relative to other countries in the world, and the countries in Europe/Central Asia developing cohort. After the first round of successful cooperation between ISET Policy institute and ADB on the previous FSI project, ISET-PI was granted the second contract for conducting a joint study together with GeoStat and NBG. In addition to the previous FSI report, the project will create real estate price indices and further analyze the high spread on interest rates in the Georgian banking sector. 

In particular, examine the issues of competitiveness of the banking sector; operating costs and profit margins of Georgian banks; the regulatory environment, dollarization and the cost of funding in local currency, risks associated with the macroeconomic environment, asset quality, sectorial diversification; ownership and governance structure of the banks, etc.