03.Dec .2020 12:30

Bochorishvili: bank loan growth pace to slow down in November and December

Bochorishvili: bank loan growth pace to slow down in November and December
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“Bank loan growth pace to slow down in November and December”, Eva Bochorishvili, head of the Galt & Taggart Research Department told TV-program Business Morning.

As of the new research from Galt & Taggart, Eva Bochorishvili noted that the annual growth of GEL loans was accelerated in October.

“The volume of loans issued by commercial banks 11.4% up y-o-y in October 2020, while m-o-m the growth amounted to 0.9% and totaled 36.4 billion GEL. According to currencies, the annual growth of GEL loans accelerated to 16.5% in October, while the annual growth rate of loans in foreign currency slowed to 7.3% (excluding the exchange rate effect), following the average annual growth of 10.0% in August-September.

Growth pace of corporate lending has slowed down y-o-y, as well as m-o-m in September. Retail loans maintain growing pace, which is highly impacted by the mortgage subsidy program. The volume of mortgage is significantly increased in October. The increase amounts to 76% y-o-y, while 14.1% m-o-m.

However, the volume of deposits in the banking sector is slowed down in October 2020 and the annual growth has made up 15.8%, while a decrease of 0.8% is fixed compared to the previous month.

At the same time, the growth pace of both lari and foreign currency deposits was slowed down. At the same time, dollarization of deposits in October amounted to 62.2%", - Bochorishvili noted.