interbank deposit/credit market represents the money market where banks trade
with each other with short-term excess liquidity. This market is an area of
high interest for the National Bank of Georgia because it plays a crucial role
for the monetary
policy transmission mechanism. The NBG influences rates on the interbank
market by publicizing its monetary policy stance and using policy instruments.
Market Indices play a key role in the financial system, banking system and the
economy. They are used for pricing different financial instruments such as:
Floating Rate Bonds, Bank Loans and Derivatives. Money market interest rate
benchmarks allow for better pricing transparency, risk allocation between
market participants and interest rate risk management. As such, they support
the development of more efficient and liquid markets and thereby a stronger and
more resilient financial system.
Money market indices are widely
used in the global financial system as benchmarks for a large volume and broad
range of financial products and contracts. The reform of TIBR follows the
global trend whereby in recent years domestic interest rate benchmarks have
been undergoing fundamental reviews and reforms to improve their robustness,
transparency and governance, whilst focusing on wider use of reformed overnight
interest rate benchmarks (the so called ‘Risk Free Rates' or ‘RFRs') such as
SONIA or EONIA.
As of today, market
participants use NBG's monetary policy rate and 3 month NBG CD Rates as a
benchmark to price GEL floating rate instruments. The NBG expects the reformed
overnight index to support the development of both the GEL interest rate derivatives
market and a new term benchmark to replace current indices as reference rates
for pricing Money Market and derivative instruments in nearest future.
The reformed TIBR methodology
includes index calculation and publishing rules, as well as its control
mechanisms. The methodology was introduced with the assistance of European Bank
for Reconstruction and Development (EBRD) and in close partnership with Market
The reformed TIBR methodology
is in line with that adopted by similar RFRs. TIBR is based on actual deals,
which will eventually increase its credibility. Additional benefit to the index
is the fact that information gathering and calculation will be done by NBG. The
index calculation methodology is also be regularly reviewed to ensure that the
methodology continues to be adequate.
Starting from August 1st, 2018,
the National Bank of Georgia (NBG) publishes money market TIBR index
daily at 9 am on it's web page. Methodology and historical data is
available on this page, as well as on the following web page https://www.nbg.gov.ge/index.php?m=544&lng=eng.
Starting from 2008 NBG was publishing on its web page TIBR1 and TIBR7 indices.
List of participants joined REPO Master Agreement
|| Bank Name
|| Joining Date
|| JSC "Silk Road Bank"
|| JSC "BasisBank"
|| JSC "Bank of Georgia"
|| JSC "Finca Bank Georgia"
|| JSC "International Bank of Azerbaijan-Georgia"
|| JSC "Credo Bank"
|| JSC "TBC Bank"
|| JSC "VTB Bank Georgia "
|| JSC "Terabank"
|| JSC “Pasha Bank Georgia”
|| JSC "Liberty Bank"
||JSC “ProCredit Bank”