National Bank of Georgia and company Montran receive Award from Central Banking
By Nika Gamtsemlidze
Monday, February 10
With the decision of international publication Central Banking, the Georgian National Bank and the company Montran received an award for Best Provider of Collateral Management Services for the implementation of the Georgian Securities Settlement System (GSSS) by the National Bank of Georgia.
The Central Banking awards are widely recognized in the international financial community and point to the high reputation and successful performance of the participating banks.
GSSS is an integrated securities settlement system that the National Bank has implemented since December 3, 2018. The GSSS is an important component of the country's financial system, with the issuance, storage, repayment, and pledging of government and private securities. It should be noted that securities are the best collateral for both the interbank market and the monetary operations of the National Bank. Consequently, thorough, fast and reliable operation of the system is an important component of promoting financial stability.
The system combines two central depositories and serves the entire capital market, where securities held in one or another depository can be used as collateral. The system itself selects securities for National Bank monetary operations and controls that these transactions are always secured with sufficient collateral, which on one hand serves the National Bank's financial risk insurance, and on the other hand- the most efficient use of securities.
GSSS is a qualitatively unique securities settlement system. It ensures that central and private securities depositors operate independently of one another under a single high-tech platform guaranteed by the National Bank for smooth operation. In this way, the GSSS system achieves full integration of the capital market, maximum security and investor confidence at the lowest cost, which is the best model for a country with small size and resources.
The GSSS system was created by the company Montan upon the order of the National Bank and the Central Depository of the Georgian Stock Exchange (GCSD). About a year after the introduction of the system, it has already attracted the attention of the central bank and capital market participants from around the world and has received high praise from various international market infrastructure experts.
According to the President of the National Bank Koba Gvenetadze, these innovative solutions have become the basis for winning the prestigious competition of central banks, which is undoubtedly another international recognition of the National Bank and its system:
“We decided to create an innovative system that would fully serve the central bank's monetary policy and financial stability mandate, and at the same time promote capital market development. In close collaboration with the GSSS system and the stock market, we have achieved all of these goals. We are pleased that our system model is stirring the interest of other countries. It is a great honor for us to receive international recognition from Central Banking together with our strategic partner, Company Montan,” noted Gvenetadze.
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