Sept 2016: Georgians deposited 14.9b GEL, borrowed 16.5b GEL

Georgians are saving less and borrowing more 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 September 2016 the sum of deposits made in Georgia’s banking sector reached 14.9 billion GEL. This was a 2.4 percent decrease, or 346.3 million GEL less month-on-month.

Also last month the sum of term deposits increased by 95.4 million GEL, while demand deposits decreased by 250.9 million GEL, said NBG.

The larisation ratio, which measures the use of the domestic currency in Georgia’s economy, constituted 30.81 percent in total non-bank deposits last month.

Meanwhile 83.9 percent of all foreign currency denominated deposits were made in US dollar while 13.1 percent were in Euro, said NBG.

How much did banks lend in September?

Commercial banks in Georgia lent 16.5 billion GEL in September 2016, which was 74 million GEL or 0.5 percent more compared to August 2016.

Figures showed loans taken out in the Georgian national currency increased by 150.1 million GEL (2.6 percent) while the sum of loans in foreign currencies decreased by 76.1 million GEL (2.3 percent) month-on-month.

By the end of September 2016, commercial banks issued 2 billion GEL worth of national currency-denominated loans (11.2 percent more compared to the previous month), and 5.6 billion GEL worth of foreign currency denominated loans (0.9 percent less) to resident legal entities.

There are 17 commercial banks in Georgia including 15 foreign-controlled banks and one branch of non-resident banks.