The National Bank of Georgia held a working meeting with representatives of leading audit firms to discuss the introduction of commercial covered (mortgage-backed) bonds and the audit firms’ role in the issuance process. The discussion centred on the requirement for a commercial bank issuing covered bonds to appoint an audit firm to monitor the assets pledged as collateral. Under the existing regulatory framework, the collateral monitoring entity must be an audit firm authorised to conduct audits of public interest entities. Audit firm representatives received additional information on auditors’ functions and responsibilities in relation to covered bond issuance, with the National Bank positioning the engagement as support for both commercial banks and audit firms as the instrument is introduced to the capital market. The National Bank noted that the preparatory phase for introducing covered bonds in Georgia has entered its final stage and that commercial banks will soon be able to issue this type of security on the Georgian market.
National Bank of Georgia 2025-10-27
National Bank of Georgia briefs audit firms on collateral monitoring role as covered bond issuance nears
The National Bank of Georgia met with leading audit firms to discuss introducing commercial covered bonds and their role in monitoring collateral assets. Audit firms must be authorised to audit public interest entities and received guidance on their responsibilities in the issuance process. The preparatory phase for introducing covered bonds in Georgia is nearing completion, enabling commercial banks to soon issue these securities.