Bank of Georgia Growth and Reform Strategy
STRONG NBG (BASEL III) CAPITAL ADEQUACY POSITION
Capital adequacy requirements introduced by National Bank of Georgia in December 2017
Transition to Basel III Standards:
Systemic capital surcharge: 2.5% of risk weighted assets to be phased-in during the
following years as per below schedule:
Capital Adequacy Ratios
Systemic Buffer
31-Dec-17
0%
31-Dec-18
1.0%
31-Dec-19
1.5%
31-Dec-20
2.0%
31-Dec-21
2.5%
Currency induced credit risk ("CICR") buffer was introduced instead of additional 75%
weighting of FX denominated loans. 56% of CICR buffer should be held on CET1 level,
75% on Tier 1 level and 100% on total capital
General Risk Assessment Program ("GRAPE") for individual banks: GRAPE buffer is
currently set at 2.6%. GRAPE buffer will be reviewed annually and will be phased-in on
different levels of capital according to the below schedule:
20%
18.1%
16.6%
17.1%
16.7%
16.8%
15%
13.3%
13.6%
12.7%
13.3%
12.2%
10%
12.2%
12.7%
11.1%
11.5%
11.0%
5%
0%
11111
31-Dec-17
31-Dec-18
31-Mar-20
31-Mar-21
31-Mar-22
CET 1
Tier 1
0%
15%
30%
45%
56%
0%
20%
40%
60%
75%
Total Capital
0%
100%
100%
100%
100%
Credit Portfolio Concentration buffer, effective from 1 April 2018 and phased in over
the four year period on different levels of capital according to the above schedule
Net Stress Test buffer effective from 1 October 2020
In the view of above, Bank of Georgia is subject to the following minimum capital
requirements:
Fully Loaded
Estimate* from
31-Dec-22
31-Dec-17
31-Dec-18 31-Dec-19
31-Dec-20 31-Decr-21
Estimate⭑ Estimate*
CET 1
8.1%
9.5%
10.1%
Tier 1
9.9%
11.4%
12.2%
10.9%
13.1%
11.8%
14.1%
12.1%
14.5%
Total Capital
12.4%
15.9%
17.1%
17.1%
17.6%
17.6%
GEL millions
4Q18
1Q19
2Q19
3Q19
4Q19
CET1 Capital Adequacy Ratio Tier I Capital Adequacy Ratio
Total Capital Adequacy Ratio
Risk Weighted Assets
15,000
13,585 13,868
12,559
11,339 11,461
12,000
9,000
6,000
3,000
* Indicated minimum capital adequacy ratios contain Pillar 1 and Pillar 2 buffer estimates. Range provides our
best minimum and maximum estimates of the variable buffers
Transition to Basel III is not expected to affect the Bank's growth prospects or its ability to
maintain dividend distributions within the existing dividend policy payout range
BANK OF GEORGIA
4Q18
1Q19
2Q19
3Q19
4Q19
21
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