The National Bank of Georgia (NBG) published a report about the current tendencies of resident commercial banks’ loan portfolios and deposits for March 2023.

The volume of loans issued by commercial banks (excluding interbank loans) in March 2023 increased by 412.20 million GEL or by 0.93% compared to the previous month (exchange rate effect excluded, increased by 1.55%) and constituted 44.87 billion GEL by the end of March 2023. The volume of loans in national currency increased by 275.08 million GEL (1.12%) and the volume of loans in foreign currency increased by 137.12 million GEL or by 0.69% in the same period (exchange rate effect excluded, increased by 2.09%).

By the end of March 2023, the total volume of national currency denominated loans to resident legal entities issued by commercial banks amounted to 7.39 billion GEL (0.42% more compared to the previous month), and foreign currency denominated loans constituted 12.46 billion GEL (1.07% more; exchange rate effect excluded volume of lending in foreign currency increased by 2.50%).

During March 2023, the volume of lending to resident household sector increased by 1.03% or 246.27 million GEL, and constituted 24.08 billion GEL by the end of March 2023.

Larization ratio for total loans constituted 55.45% by the end of March 2023 and increased by 0.10 percentage point (exchange rate effect excluded, decreased by 0.24 percentage point), compared to the end of February 2023.

The total volume of non-bank deposits in the country′ s banking sector decreased by 0.62% or by 268.98 million GEL (exchange rate effect excluded volume of deposits increased by 0.47%), compared to the end of February 2023 and constituted 43.34 billion GEL by the end of March 2023. In March, the volume of term deposits increased by 74.07 million GEL (by 0.44%; exchange rate effect excluded volume of term deposits increased by 1.48%). Demand deposits decreased by 343.05 million GEL (by 1.28%; exchange rate effect excluded volume of demand deposits decreased by 0.16%).

The total volume of non-bank deposits in the country′ s banking sector decreased by 0.62% or by 268.98 million GEL (exchange rate effect excluded volume of deposits increased by 0.47%), compared to the end of February 2023 and constituted 43.34 billion GEL by the end of March 2023. In March, the volume of term deposits increased by 74.07 million GEL (by 0.44%; exchange rate effect excluded volume of term deposits increased by 1.48%). Demand deposits decreased by 343.05 million GEL (by 1.28%; exchange rate effect excluded volume of demand deposits decreased by 0.16%).

The larization ratio of total non-bank deposits constituted 46.49% by the end of March 2023 and increased by 1.25 percentage point (exchange rate effect excluded by 0.75 percentage point) compared to the end of February 2023.

The market interest rate on term deposits constituted 7.83%. In particular, the market interest rate for national currency denominated deposits was 11.56% and the market interest rate for foreign currency denominated deposits was 1.13%.

The share of the US dollar in the total volume of foreign currency denominated deposits equals 80.81% and the share of the Euro equals 17.43%.