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18.3 billion GEL deposited, 19.8 billion lent in September 2017

Friday, October 27
In September 2017 the sum of deposits made in Georgia’s banking sector exceeded 18.3 billion GEL, show latest data by the National Bank of Georgia (NBG).

This was a 3.2 percent increase, or 571.7 million GEL more month-on-month.

Last month, the sum of term deposits – deposits made for a predetermined period of time – increased by 457 million GEL, while demand deposits, which allow for flexible withdrawal, decreased by 114.7 million GEL.

The larisation ratio, which measures the use of the domestic currency in Georgia’s economy, constituted 34.65 percent in total non-bank deposits last month.

The annual average weighted interest rate on term deposits constituted 5 percent. In particular, the interest rate for national currency denominated deposits was 9.5 percent and the interest rate for foreign currency denominated deposits 3 percent.

Meanwhile, 84.9 percent of foreign currency deposits in Georgia during the same time period were denominated in US dollars, while 12.5 percent of deposits were made in euros.

How much did banks lend in September?

Commercial banks in Georgia lent 19.8 billion GEL in August 2017, which was 601.1 million GEL or 3.1 percent more compared to the previous month.

Loans taken out in Georgian lari increased by 380 million GEL (4.7 percent), while loans denominated in foreign currencies also increased by 220.9 million GEL (2 percent) month-over-month.

Over the course of September 2017, commercial banks issued 2.4 billion GEL worth of lari-denominated loans (7.9 percent more compared to the previous month). In the same month, 6.2 billion GEL worth of foreign currency denominated loans (1.4 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. (