Increased interest rates and reduced lending of Georgian banks

Increased interest rates and reduced lending of Georgian banks

access_time2021-03-02 15:36:29

Georgia’s banking sector began the year with a profit of GEL 113.3 million but compared to December 2020, interest income of banks decreased by 14 million and amounted to GEL 367.5 million.


At the same time, non-interest income increased by $ 3 million.


banks suffered a loss in the amount of GEL 13.4 million from  foreign exchange operations. In January 2021 commercial banks expenses decreased by GEL 24.4 million compared to December despite an increase in income.


As of February 1, 2021  a volume of deposits amounted to GEL        34.8 billion which is 0.72% more than in December. The deposit larization ratio stood at 38.5% that is 0.06% less than in December 2020.


Unlike deposits, the volume of lending decreased by GEL 48,2 million compared with December, the loan larization ratio increased by 0, 18% and amounted to 44, 14%.


It’s worth mentioning  that interest rates on all banking products increased in January 2021. In particular, interest on mortgage loans stood at  10.9%, that is 0.26% more than in December 2020. Car loans rose by 2% to 23.6%, interest on pawn shop loans increased from 18.1% to 19.3%.


The interest rate on consumer  loans which are  the most popular, has  remained almost unchanged and amounted to 20.56% against 20.28% in December 2020.

Interest on business loans in national currency also increased from 11.5% to 12.09%.

Interest rates declined only on  business loans in foreign currency - from 7.13% to 6.17%.


In January  Georgian banks earned GEL 410.9 million, operating expenses stood at GEL 305.9 million.


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