July 2016: Georgians deposited 14.8b GEL, borrowed 16.6b GEL

Georgians are saving more money but they are also borrowing more, shows latest data by the National Bank of Georgia (NBG).

Today NBG released data outlining the current trends in Georgia’s banking sector.

Current bank deposit trends

In July 2016 the sum of deposits made in Georgia’s banking sector reached 14.8 billion GEL. This was a 3.1 percent increase, or 448.9 million GEL more month-on-month.

Also last month the sum of term deposits increased by 272.9 million GEL, while demand deposits increased by 176 million GEL, said NBG.

The larisation ratio, that measures the use of the domestic currency in Georgia’s economy, constituted 31.15 percent in total non-bank deposits last month.

Meanwhile 83.4 percent of all foreign currency denominated deposits were in US dollar while 14 percent were in Euro, said NBG.

How much did banks lend in July?

Commercial banks in Georgia lent 16.6 billion GEL in July 2016, which was 224.1 million GEL or 1.4 percent more compared to June 2016.

Statistics showed loans taken out in the Georgian national currency increased by 156.5 million GEL (2.8 percent) while the volume of loans in foreign currencies increased by 67.6 million GEL (0.6 percent) in July.

By the end of July 2016, commercial banks issued 1.9 billion GEL worth of national currency-denominated loans (9.4 percent more compared to the previous month), and 5.9 billion GEL worth of foreign currency denominated loans (0.7 percent less) to resident legal entities.

There are 19 commercial banks in Georgia including 17 foreign-controlled banks and one branch of non-resident banks.

In July 2016 the total assets of Georgian commercial banks increased by 1.4 billion GEL (or by 5.7 percent) and constituted 26.7 billion GEL.

The banking sector’s own funds (equity capital) equalled 3.8 billion GEL, which made up 14.1 percent of the commercial banks’ total assets.