The Georgian banking sector is stable, with strong asset quality (non-performing loan ratio of 1.6% as of 3Q23), high profitability (3Q23: return on equity of 27%), and high capitalisation (regulatory capital ratio of 22.4% as of 3Q23), reads the report of Fitch Rating.
Fitch Ratings has affirmed Georgia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB’ with a Positive Outlook.
“Dollarisation in deposits and lending remains relatively high in Georgia, at 50.8% and 45% as of November 2023, respectively. FX credit growth was particularly strong in January-November 2023, at 19% yoy. Macroprudential measures introduced by the NBG are intended to gradually reduce the level of FX lending growth, but this will take time to achieve,” reads the report.
The credit rating agency notes that according to economic development indicators, Georgia is ahead of the countries of similar ranking. The international rating agency also emphasizes the importance of Georgia’s granting EU candidate country status.
