Banking Association of Georgia expects banks' loan portfolios to grow by 12–13% in 2026, while total assets are projected to increase by 10–11%. Speaking to BMG, the association's Analytical Director Davit Rusia said the current annual lending growth rate of 14.2% remains healthy, although from a regulator's perspective it may be considered relatively high, as credit expansion continues to outpace expected economic growth of 6–7%.
Rusia noted that retail lending remains the main driver of credit growth, followed by corporate lending, while financing for small and medium-sized enterprises (SMEs) continues to expand at a slower pace. He added that faster credit growth relative to GDP will further increase the ratio of bank lending to the size of the economy.
According to the Banking Association, corporate lending likely accelerated in June ahead of new regulations that took effect on July 1, raising the minimum threshold for foreign currency lending to GEL 1 million. Rusia said banks likely sought to maximize the use of foreign currency funding before the rules changed, after which they may increasingly convert resources into lari and expand local currency lending.
According to the National Bank of Georgia, banks' total loan portfolio reached GEL 73.39 billion at the end of May 2026, increasing by GEL 504.5 million during the month. Adjusted for exchange rate effects, annual loan growth stood at 14.22%.
