19 billion GEL deposited, 20.6 billion lent in October 2017

In October 2017 the sum of deposits made in Georgia’s banking sector reached 19 billion GEL, show latest data by the National Bank of Georgia (NBG).

This was a 3.5 percent increase, or 645.2 million GEL more month-on-month.

Last month, the sum of term deposits – deposits made for a predetermined period of time – increased by 357.7 million GEL, while demand deposits, which allow for flexible withdrawal, decreased by 287.5 million GEL.

The larisation ratio, which measures the use of the domestic currency in Georgia’s economy, constituted 33.61 percent in total non-bank deposits last month.

The annual average weighted interest rate on term deposits constituted 5.1 percent. In particular, the interest rate for national currency denominated deposits was 8.4 percent and the interest rate for foreign currency denominated deposits 2.9 percent.

Meanwhile, 84.6 percent of foreign currency deposits in Georgia during the same time period were denominated in US dollars, while 13.2 percent of deposits were made in euros.

How much did banks lend in October?

Commercial banks in Georgia lent 20.6 billion GEL in October 2017, which was 772.2 million GEL or 3.9 percent more compared to the previous month.

Loans taken out in Georgian lari increased by 156.1 million GEL (1.9 percent), while loans denominated in foreign currencies also increased by 615.6 million GEL (5.4 percent) month-over-month.

Over the course of October 2017, commercial banks issued 2.4 billion GEL worth of lari-denominated loans (1.3 percent more compared to the previous month). In the same month, 6.5 billion GEL worth of foreign currency denominated loans (5 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.