Based on a decision by the Financial Stability and Monetary Policy Committees of the National Bank of Georgia (NBG), the upper limit of the minimum reserve requirement for commercial banks was reduced by 5 percentage points, from 25% to 20%.

As Natia Turnava, NBG President, explained, the reduction of minimum reserve requirements will allow commercial banks to offer loans to small businesses and customers at lower interest rates.

“Today, we held the meeting of the Financial Stability Committee. This is a committee which regularly reviews financial stability parameters in the country. We assessed our banking system as sound and resilient with excellent asset quality. Risks are mitigated by high liquidity and high capital buffers.

Therefore, we decided to reduce the upper limit of the minimum reserve requirement for commercial banks from 25% to 20%. As for expectations, the banks will have the possibility to offer loans to small businesses at more attractive conditions and lower interest rates, which will contribute to the financial stability,” said Natia Turnava.