As of June 2022, the Georgian banking system operates with deposit resources of GEL 38.7 billion. According to the Banking Association of Georgia, in 2018-2019, bank assets and total deposits grew at a more or less equal pace, and in 2020, a 30% increase of deposits was recorded due to the pandemic y-o-y.
According to the data of the 5th month of 2022, the growth of bank deposits is modest (1.87%).
The President of the Banking Association, Aleksandre Dzneladze, spoke about the current trends in deposits on the "Business Morning" program. According to him, the growth of deposits is mainly determined by the savings of individuals.
"Deposits placed in foreign currency are still dominant on the market. Despite the NBG's repeated attempts, the system is unable to increase deposit volume in the national currency. The reason can be the recurring and jump-like fluctuations of GEL during 2020-21, significant deviation of the current inflation rate from the target indicators, the increased rate of unemployment and the ambiguity of the body responsible for the stability of the national currency.
Compared to the end of 2021 (60.50%), the volume of deposits denominated in foreign currency decreased by May 2022 (58.99%). All this was facilitated by the first stabilization of the exchange rate during 2022, and then by the strengthening of the rate. The recovery of the economy and the displayed growth indicators should also be taken into account. Despite the expectations expressed by the NBG, we may see double-digit GDP growth again this year.
Individuals are active in placing deposits in the banking system of Georgia. 51.43% of deposits in the banking system account for the individuals," - Aleksandre Dzneladze said.
