Georgians save more but borrow more, say National Bank

Georgians are saving more but at the same time are borrowing more from commercial banks, reveals new data published by the National Bank of Georgia (NBG).

People in Georgia deposited 14.5 billion GEL into local banks but 16.2 billion GEL was borrowed in January 2016, said NBG.

The current trends of bank deposits and loan portfolio in Georgia’s commercial banks outlined by NBG showed the number and sum of deposits, as well as loans, increase in January 2016 compared to December 2015.

Current trends of bank deposits

The sum of deposits in Georgia’s banking sector exceeded 14.5 billion GEL in January 2016. This was 1.4 percent, or a 198.7 million GEL increase month-on-month.

Last month the volume of term deposits increased by 323 million GEL, while demand deposits decreased by 124.3 million GEL.

The larisation ratio, that measures the use of the domestic currency in the country’s economy, constituted 28.66 percent in total non-bank deposits last month.

Meanwhile deposits in the US dollar made up 81.2 percent of the total number of foreign currency denominated deposits and deposits in Euro made up 16.4 percent.

NBG said the interest rate for deposits in Georgian Lari was 10.8 percent and the interest rate for foreign currency denominated deposits was 3.8 percent.

How much did banks lend in January?

Commercial banks in Georgia lent 16.2 billion GEL in January 2016 which was 176.1 million GEL or 1.1 percent more compared to December 2015.

NBG revealed people borrowed more money in a foreign currency than in the national currency. Statistics showed loans taken out in Lari decreased by 129.6 million GEL (2.3 percent) while the volume of loans in foreign currencies increased by 305.7 million GEL or by 3.0 percent in January.

The larization ratio for total loans constituted 34.23 percent in January 2016, said the NBG.

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