The concentration of the two largest banks in Georgia’s banking sector has shown a slight decline, according to Aleksandre Dzneladze, President of the Banking Association of Georgia. Speaking on BM.GE, Dzneladze noted that the combined share of TBC Bank and Bank of Georgia in total sector assets stood at 76.6% during the first eight months of 2025, compared to 77.9% in the same period last year, a decrease of 1.3 percentage points.
Dzneladze attributed the decline in concentration to two key factors:
- The growth of smaller banks, particularly Liberty Bank, Basisbank, and Credo Bank.
- The entry of new microbanks into the market, which contributed to asset diversification.
“The assets of the banking sector have exceeded GEL 100 billion, almost equal to the country’s GDP. While overdue loans are increasing in absolute terms, their share has been consistently decreasing over the past five years. In terms of overdue and problem loans, Georgia has one of the best indicators not only in the region but also compared to the European Union,” Dzneladze explained.
He emphasized that the higher growth rates of smaller and mid-sized banks are strengthening competition and creating a more favorable environment for consumers.
Meanwhile, sector dynamics may soon shift further, as the third and fourth, largest banks, Liberty Bank and Basisbank, are considering a merger.
The National Bank of Georgia has issued a preliminary assessment, stating that the potential acquisition of Liberty Bank by Basisbank would not negatively impact competition. The newly merged entity would control around 9.9% of the sector’s total assets.
According to Dzneladze, the combination of new entrants, rising growth rates of smaller banks, and potential mergers could pave the way for new licenses, increased competition, and ultimately better services and offers for consumers.
