Oct 2016: Georgians deposited 15.6b GEL, borrowed 16.9b GEL

Georgians are saving more 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 October 2016 the sum of deposits made in Georgia’s banking sector reached 15.6 billion GEL. This was a 4.8 percent increase, or 719.1 million GEL more, month-on-month.

Also last month the sum of term deposits increased by 298.5 million GEL, while demand deposits increased by 420.7 million GEL, said NBG.

The larisation ratio, which measured the use of the domestic currency in Georgia’s economy, constituted 30.32 percent in total non-bank deposits last month.

Meanwhile the share of the US dollar in the total volume of foreign currency denominated deposits equalled 84.1 percent and the share of the Euro equalled 13.3 percent.

How much did banks lend in October?

Commercial banks in Georgia lent 16.9 billion GEL in October 2016, which was 447.4 million GEL or 2.7 percent more compared to September 2016.

Figures showed loans taken out in the Georgian national currency increased by 110 million GEL (1.8 percent) while the sum of loans in foreign currencies decreased by 337.4 million GEL (3.2 percent) month-on-month.

By the end of September 2016, commercial banks issued 1.9 billion GEL worth of national currency-denominated loans (4.9 percent less compared to the previous month), and 5.7 billion GEL worth of foreign currency denominated loans (1.6 percent more) to resident legal entities.

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