March 2016: Georgians deposited 14.3b GEL, borrowed 15.9 b GEL

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

People in Georgia deposited 14.3 billion GEL into local banks but 15.9 billion GEL was borrowed in March 2016, said NBG.

The current trends of bank deposits and loan portfolios in Georgia’s commercial banks outlined by NBG showed the number and sum of deposits, as well as loans, increased in March 2016 compared to February 2016.

Current trends of bank deposits

In March 2016 the sum of deposits made in Georgia’s banking sector exceeded 14.3 billion GEL. This was a 2.4 percent decrease, or 347.8 million GEL less month-on-month.

Also last month the volume of term deposits decreased by 253.6 million GEL, while demand deposits decreased by 94.2 million GEL.

The larisation ratio, which measures the use of the domestic currency in the country’s economy, constituted 29.19 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 81.6 percent and the share of the Euro equalled 15.6 percent.

How much did banks lend in January?

Commercial banks in Georgia lent 15.9 billion GEL in March 2016 to borrowers, which was 238.1 million GEL or 1.5 percent more compared to February 2016.

Statistics showed loans taken out in the Georgian national currency, the Lari, decreased by 73.2 million GEL (1.3 percent) while the volume of loans in foreign currencies decreased by 311.3 million GEL or by 2.9 percent in March.

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