Bank deposits totaled GEL 35.3bn in June 2021, with slowing growth to 16.7% YoY, down by 5.3pp compared to May. The slowdown in growth primarily occurred in the lari-denominated deposits (+24.2% YoY, down from 37.4% in May), whereas foreign currency deposit growth also slowed down a bit (+12.2% YoY, down from 13.7% in May).
At the same time, compared to the previous month deposit dollarization has decreased by 0.7pp to 60.1%, however, when accounting for the currency exchange effect the dollarization has increased by 0.1pp. Interest rates on GEL deposits have continued their upward trend, increasing by 0.4pp since May to 10.0%, whereas foreign currency deposit rates have plunged lower to 1.2%.
Consequently, average interest rate spread between GEL and FX deposits reached all time high of 8.8%, which is even higher for individual depositors at 9.6%.