Georgia’s financial system on a more stable footing
Over the past year excessively rapid growth of household lending has been successfully reined in, and aggressive lending practices of microfinance institutions have been banned. The high level of dollarisation and excessive debt of households remain vulnerabilities of the financial system and constrain monetary and exchange rate policy. The National Bank has made good progress in developing a regulatory framework for capital markets. The pensions fund became operational in 2019 and may support liquidity in local markets.