In December 2020, compared to the previous month, the total assets of Georgian commercial banks (in current prices) increased by 966.9 million GEL, (or by 1.73%) and constituted 56.9 billion GEL. Assets growth were mainly due to the 1 billion increase in deposits. At the same time, the size of banks' loan portfolios increased by 858 million in the last month.

Deposits

“The total volume of non-bank deposits in the country′ s banking sector increased by 3.09% or by 1.04 billion GEL (exchange rate effect excluded volume of deposits increased by 3.57%), compared to December 1, 2020 and constituted 34.63 billion GEL by January 1, 2021. In December, the volume of term deposits decreased by 21.21 million GEL (by 0.13%; exchange rate effect excluded volume of term deposits increased by 0.43%). Demand deposits increased by 1.06 billion GEL (by 6.07%; exchange rate effect excluded volume of demand deposits increased 6.49%).

The larization ratio of total non-bank deposits constituted 38.61% by January 1, 2021 and increased by 0.57 percentage point (exchange rate effect excluded by 0.39 percentage point) compared to December 1, 2020.

The market interest rate on term deposits constituted 6.34%. In particular, the market interest rate for national currency denominated deposits was 8.31% and the market interest rate for foreign currency denominated deposits was 2.01%.

The share of the US dollar in the total volume of foreign currency denominated deposits equals 84.24% and the share of the Euro equals 14.39%”, the NBG report reads.

Loans

“The volume of loans issued by commercial banks (excluding interbank loans) in December 2020 increased by 858.68 million GEL or by 2.30% compared to the previous month (exchange rate effect excluded, increased by 2.23%) and constituted 38.22 billion GEL by January 1, 2021. The volume of loans in national currency increased by 676.90 million GEL (4.16%) and the volume of loans in foreign currency increased by 181.77 million GEL or by 0.86% in the same period (exchange rate effect excluded, increased by 0.74%).

By the end of December 2020, the total volume of national currency denominated loans to resident legal entities issued by commercial banks amounted to 5.42 billion GEL (6.90% more compared to the previous month), and foreign currency denominated loans constituted 13.20 billion GEL (1.70% more; exchange rate effect excluded volume of lending in foreign currency increased by 1.58%).

During December 2020, the volume of lending to resident household sector increased by 1.51% or 279.75 million GEL, and constituted 18.75 billion GEL by January 1, 2021.

Larization ratio for total loans constituted 44.32 percent by January 1, 2021 and increased by 0.79 percentage point (exchange rate effect excluded, increased by 0.82 percentage point), compared to December 1, 2020”, the NBG’s report reads.