The National Bank of Georgia (NBG) published information on the current tendencies of resident commercial banks’ loan portfolios and deposits as of July 2024.

The volume of loans issued by commercial banks (excluding interbank loans) in July 2024 decreased by 202.32 million GEL or by 0.35% compared to the previous month (exchange rate effect excluded, increased by 0.89%) and constituted 57.14 billion GEL by the end of July 2024. The volume of loans in national currency increased by 420.90 million GEL (1.34%) and the volume of loans in foreign currency decreased by 623.23 million GEL or by 2.41% in the same period (exchange rate effect excluded, increased by 0.35%).

By the end of July 2024, the total volume of national currency-denominated loans to resident legal entities issued by commercial banks amounted to 9.37 billion GEL (0.12% more compared to the previous month), and foreign currency denominated loans constituted 16.18 billion GEL (2.27% less; exchange rate effect excluded volume of lending in foreign currency increased by 0.51%).

During July 2024, the volume of lending to the resident household sector increased by 0.77% or 227.90 million GEL, and constituted 29.74 billion GEL by the end of July 2024.

Larization ratio for total loans constituted 55.76% by the end of July 2024 and increased by 0.93 percentage points (exchange rate effect excluded, increased by 0.24 percentage points), compared to the end of June 2024.

The total volume of non-bank deposits in the country′ s banking sector increased by 1.51% or by 825.97 million GEL (exchange rate effect excluded volume of deposits increased by 2.98%), compared to the end of June 2024 and constituted 55.66 billion GEL by the end of July 2024. In July, the volume of term deposits increased by 213.61 million GEL (by 0.89%; exchange rate effect excluded volume of term deposits increased by 2.21%). Demand deposits increased by 612.36 million GEL (by 1.98%; exchange rate effect excluded volume of demand deposits increased by 3.58%).

The larization ratio of total non-bank deposits constituted 51.50% by the end of July 2024 and increased by 0.56 percentage point (exchange rate effect excluded decreased by 0.18 percentage points) compared to the end of June 2024.

The market interest rate on term deposits constituted 6.96%. In particular, the market interest rate for national currency-denominated deposits was 9.13% and the market interest rate for foreign currency-denominated deposits was 2.33%.

The share of the US dollar in the total volume of foreign currency-denominated deposits equals 77.90% and the share of the Euro equals 20.27%.