Rapid growth of assets in the Georgian banking sector – statistics for June

According to the latest data published on the website of the National Bank of Georgia, in June 2023, the total assets of the country's commercial banks increased markedly by GEL 2.17 billion, which is 3.2% compared to the previous month. The total assets of the banking sector have reached an impressive 69.9 billion lari, which is approaching 26.9 billion dollars at the current exchange rate. It is important to note that 13 out of 15 commercial banks in Georgia have foreign capital in their authorized capital, which indicates the attractiveness of this region for international investors.

In addition to the increase in assets, there is also an increase in the volume of deposits in the banking sector in Georgia. According to the National Bank of Georgia, the volume of deposits on July 1, 2023 amounted to 46.79 billion lari, which is 2.88% more than at the beginning of June of the same year. Interestingly, term deposits decreased slightly by 1.5 million lari, while demand deposits increased by 1.31 billion lari, which is 4.74%.

The restrained inflation rate in Georgia is becoming a significant topic for economic review. According to statistics, the level of larization of deposits on July 1 of this year amounted to 49.22%, which is 0.28 percentage points less than the situation on June 1. At the same time, the weighted average market interest rate on term deposits was 8.45%, divided by 10.91% for deposits in national currency and 1.47% for deposits in foreign currency.

The dynamics of lending in Georgia is also of great interest. In June 2023, the volume of loans issued by commercial banks increased by 1.6 billion lari, which is 3.5% compared to the previous month, and as of July 1 of this year reached 47.33 billion lari. Loans in national currency increased by 2.5%, amounting to 7.63 billion lari, and loans in foreign currency increased by 4.74%, reaching 13.17 billion lari. These data indicate an increase in the volume of lending to the residential household sector, which is 1.95% or 480.75 million lari. The larization ratio of the total volume of loans at the end of June 2023 was 54.81%, which is slightly less than in the previous month, by 0.53 percentage points.

Such indicators clearly indicate the stable development of Georgia's banking sector and the attractiveness of the country for investment and tourism business. The continuation of positive dynamics can become a key factor in Georgia's long-term economic success.