| Summary: | This technical assistance report on Georgia focuses on operationalizing the new bank recovery and resolution frameworks. The economic environment has improved, as coronavirus disease, 2019 has been brought under control but there are new challenges emerging. Economic growth is strong, interest rates have risen, the exchange rate is historically high, and credit maintains a high growth rate. Increasing international commodity prices have contributed to rising inflation and inflationary expectations. The current mission reviewed the benchmarking analysis and acknowledged the significant work done by the resolution function. The benchmarking tool allowed a clear comparison of recovery options and scenarios among the different recovery plans. This will be important for the assessment while providing banks with useful feedback. The mission suggested further improvement for the benchmarking tool and advised keeping the instrument simple and scalable. The mission delivered a simulation to help the authorities’ benchmark their progress on resolution planning and preparedness
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