16.4 billion GEL deposited, 18.7 billion lent in May 2017

In May 2017 the sum of deposits made in Georgia’s banking sector reached 16.4 billion GEL, show latest data by the National Bank of Georgia (NBG).

This was a 1.1 percent decrease, or 173.4 million GEL more month-on-month.

Last month, the sum of term deposits – deposits made for a predetermined period of time – increased by 49.7 million GEL, while demand deposits, which allow for flexible withdrawal, also increased by 123.6 million GEL.

The larisation ratio, which measures the use of the domestic currency in Georgia’s economy, constituted 31.42 percent in total non-bank deposits last month.

Meanwhile, 86 percent of foreign currency deposits in Georgia during the same time period were denominated in US dollars, while 11.4 percent of deposits were made in euros.

How much did banks lend in May?

Commercial banks in Georgia lent 18.7 billion GEL in May 2017, which was 172.3 million GEL or 0.9 percent more compared to the previous month.

Loans taken out in Georgian lari increased by 157.3 million GEL (2.1 percent), while loans denominated in foreign currencies decreased by 15 million GEL (0.1 percent) month-over-month.

Over the course of May 2017, commercial banks issued 2.2 billion GEL worth of lari-denominated loans (0.9 percent more compared to the previous month). In the same month, 6.1 billion GEL worth of foreign currency denominated loans (0.2 percent more) were made to resident legal entities.

There are 16 commercial banks in Georgia, including 15 foreign-owned banks and one branch of non-resident banks.