August 2016: Georgians deposited 14.6b GEL, borrowed 16.4b GEL

Higher prices for vegetables contributed to a 0.9% increase in the cost of food and non-alcoholic beverages month-on-month, noted Geostat. Photo by N. Alavidze/, 26 Sep 2016 - 16:26, Tbilisi,Georgia

Georgians are saving less and borrowing less money than previously, shows latest data by the National Bank of Georgia (NBG).

NBG today released latest monthly data outlining the current trends in Georgia’s banking sector.

How much did people deposit?

In August 2016 the sum of deposits made in Georgia’s banking sector reached 14.6 billion GEL. This was a 1.6 percent decrease, or 234.8 million GEL less month-on-month.

Also last month the sum of term deposits increased by 5.2 million GEL, while demand deposits decreased by 240 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 83.6 percent of all foreign currency denominated deposits were made in US dollar while 13.5 percent were in Euro, said NBG.

How much did banks lend in August?

Commercial banks in Georgia lent 16.4 billion GEL in August 2016, which was 185.6 million GEL or 1.1 percent less compared to July 2016.

Figures showed loans taken out in the Georgian national currency increased by 64.1 million GEL (1.1 percent) while the sum of loans in foreign currencies decreased by 249.7 million GEL (2.3 percent) month-on-month.

By the end of August 2016, commercial banks issued 1.8 billion GEL worth of national currency-denominated loans (3.3 percent less compared to the previous month), and 5.7 billion GEL worth of foreign currency denominated loans (3.5 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.