16.1 billion GEL deposited, 18.4 billion lent in March 2017

Georgians are saving less and borrowing more money than previously, shows latest data by the National Bank of Georgia (NBG).

In March 2017 the sum of deposits made in Georgia’s banking sector reached 16.1 billion GEL. This was a 2.8 percent decrease, or 470.6 million GEL less month-on-month.

Last month, the sum of term deposits – deposits made for a predetermined period of time – decreased by 314.6 million GEL, while demand deposits, which allow for flexible withdrawal, decreased by 156 million GEL.

The larisation ratio, which measures the use of the domestic currency in Georgia’s economy, constituted 30.81 percent in total non-bank deposits last month.

Meanwhile, 84.6 percent of foreign currency deposits in Georgia during the same time period were denominated in US dollars, while 12.9 percent of deposits were made in euros.

How much did banks lend in March?

Commercial banks in Georgia lent 18.4 billion GEL in March 2017, which was 307.4 billion GEL or 1.6 percent less compared to the previous month.

Loans taken out in Georgian lari increased by 396.6 million GEL (5.8 percent), while loans denominated in foreign currencies decreased by 704.1 million GEL (5.9 percent) month-over-month.

Over the course of March 2017, commercial banks issued 2.1 billion GEL worth of lari-denominated loans (4.6 percent more compared to the previous month). In the same month, 6.2 billion GEL worth of foreign currency denominated loans (4.4 percent less) were made to resident legal entities.

There are 17 commercial banks in Georgia, including 14 foreign-owned banks and one branch of non-resident banks.