19.8 billion GEL deposited, 21.7 billion lent in December 2017

About 19.8 billion GEL was deposited in Georgian banks in December 2017, making for a 0.7 percent (141.5 million GEL) month-over-month decrease.

During the same time, Georgian banks lent 21.7 million GEL, which was 133.7 million GEL or 0.6 percent more compared to the previous month, show the latest data by the National Bank of Georgia (NBG).

Current tendencies of bank deposits and loans

Last month, the sum of term deposits (deposits made for a predetermined period of time) decreased by 509.5 million GEL, while demand deposits, which allow for flexible withdrawal, increased by 257.7 million GEL.

The larisation ratio, which measures the use of the domestic currency in Georgia’s economy, constituted 34.44 percent in total non-bank deposits last month.

The annual average weighted interest rate on term deposits constituted 4.4 percent. In particular, the interest rate for national currency denominated deposits was nine percent and the interest rate for foreign currency denominated deposits 2.5 percent.

Meanwhile, 84.2 percent of foreign currency deposits in Georgia during the same time period were denominated in US dollars, while 13.7 percent of deposits were made in euros.

As for loans taken out in Georgian lari, it increased by 319 million GEL (3.6 percent), while loans denominated in foreign currencies also increased by 185.3 million GEL (1.4 percent) month-over-month.

Over the course of December 2017, commercial banks issued 2.5 billion GEL worth of lari-denominated loans (2.4 percent more compared to the previous month). In the same month, 7.1 billion GEL worth of foreign currency denominated loans (1.3 percent more) were made to resident legal entities.

Meanwhile, the NBG announced new regulations for those individuals who carry out money transfers. Following the regulations it will be obligatory for those individuals to be registered as payment service providers.

In accordance with the amendments made on 23 December 2017 to the Organic Law of Georgia on the National Bank of Georgia, an individual making money transfers will no longer be considered as an independent entity of the financial sector,” said the NBG.

The NBG explained that without a registration in Georgia’s central bank, entrepreneurs will not be able to obtain cash funds for more than 20 individuals.

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