Regulatory Alerts2020-12-29 | 241/04Rule on Recapitalization of a Commercial Bank in Resolution by Means of Write-down or Conversion of Bank’s Liabilities
The National Bank of Georgia issued this rule to establish the legal framework for applying the bail-in tool to recapitalize failing commercial banks or bridge banks. It defines the scope of eligible liabilities subject to write-down or conversion, explicitly excluding covered deposits, employee payables, and critical operational liabilities, while mandating that shareholders absorb losses first. The regulation further details the determination of Minimum Requirement for Eligible Liabilities, the calculation of conversion rates, and the requirement for banks to submit and implement a post-resolution action plan.
Share