Nasdaq Partners with National Bank of Georgia to Modernize Treasury Infrastructure

The banks involved in this landmark venture include Bank of Georgia, TBC Bank, Liberty Bank, Terabank, and Basisbank. The deployment of the Nasdaq Calypso platform will operate under a shared, common infrastructure model, enhancing the efficiency and effectiveness of treasury operations across these institutions.

Natia Turnava, Governor of the National Bank of Georgia, emphasized the strategic importance of this modernization effort: “Modernising Georgia's treasury infrastructure is a strategic priority for the National Bank of Georgia and a critical step in the continued development of our financial system." She highlighted that this partnership will elevate standards in risk management, regulatory oversight, and operational resilience, ultimately contributing to Georgia's economic growth.

Georgia’s commercial banking sector has witnessed remarkable growth, with total assets nearing USD 38 billion over the past five years. This expansion has increased the demand for sophisticated treasury infrastructures that can support complex financial instruments and adhere to rigorous regulatory standards. The traditional model, where individual banks invest in their own infrastructure, is becoming increasingly untenable.

Magnus Haglind, Head of Capital Markets Technology at Nasdaq, noted that this partnership illustrates how a shared infrastructure model can deliver significant value. By leveraging Nasdaq's extensive experience with modernization programs, the banks can evolve their systems without shouldering the full costs and complexities individually.

The Nasdaq Calypso platform will be implemented as a shared infrastructure solution, allowing each of the five banks to operate as separate entities within a unified system. This centralized approach ensures that while each institution can tailor the platform to meet its specific needs, they also benefit from standardized reporting, shared market data, and collective governance.

The platform covers the entire trade lifecycle, including deal capture, risk management, compliance, settlement, accounting, and financial reporting. This end-to-end architecture is designed to streamline operations, reduce reconciliation burdens, and provide a centralized source of truth for treasury management.

The move towards a shared infrastructure is set to deliver systemic advantages not just for the banks involved but also for the National Bank of Georgia. Enhanced visibility into treasury exposures and liquidity positions will enable improved macroprudential supervision, which is vital for maintaining financial stability.

Lasha Jugeli, Executive Secretary of the Georgian Financial Markets Treasuries' Association, underscored the significance of this initiative: “The Georgian Market Advancement Program (GMAP) is the result of years of deliberate coordination across Georgia's banking sector... By aligning on a shared infrastructure backed by Nasdaq's global expertise, our member banks are collectively raising the standard for treasury management across the sector."

The project management component of the initiative is being financed by Japan through the Japan–EBRD Cooperation Fund, highlighting international collaboration and support for Georgia's financial modernization efforts.

As the five participating banks represent a significant portion of Georgia's commercial banking assets, their adoption of the Nasdaq Calypso platform is expected to redefine the operational landscape, enabling Georgia to emerge as a modern and well-governed financial market.

In conclusion, this partnership not only signifies a major technological upgrade for Georgia's banking sector but also reflects a broader commitment to aligning with international financial standards and practices. The future of Georgia's financial markets looks promising, with enhanced infrastructure paving the way for sustained economic growth and stability.