Despite having comparable market sizes and financial structures, the Armenian and Georgian banking sectors show a significant difference in market concentration, with Armenian banks demonstrating more balanced asset distribution. This assessment was shared by Levan Gogoladze, ESG and Sustainable Finance Coordinator at the Georgian Banking Association, in his interview with BMG.
Gogoladze pointed out that both countries have comparable market sizes and similar currency structures in their deposits and loan portfolios. However, he highlighted a notable difference in market concentration.
"In Georgia, two major banks control approximately 70% of the market share. In contrast, Armenia shows a lower concentration level among its top five banks, indicating greater market diversity," Gogoladze explained.
Despite these structural differences, the banking expert noted that both countries' banking sectors show similar profitability indicators and maintain comparable numbers of operating banks.
