Baku, Azerbaijan, August 6
By Tamilla Mammadova – Trend:
Total assets of the banking sector in Georgia increased by 20.7 percent compared the same period of 2018 and amounted to 43.1 billion lari, TBC Bank of Georgia told Trend.
As the bank said, the Georgian banking sector is conservatively and prudently regulated by the National Bank of Georgia and, as a result, displays strong capital and liquidity levels, as well as sound asset quality, high profitability and sustainable growth.
Also, the bank added, that the financial sector, dominated by the banks, continues to grow under a prudent regulatory framework.
The bank said, that as of June 30, 2019 total assets of the banking sector increased by 20.7 percent compared the same period of 2018 and amounted to 43.1 billion lari, or an estimated 100.9 percent of GDP.
Total loan portfolio increased by 24 percent and reached 28.7 billion lari as of the end of 2Q2019. Excluding the FX effect (foreign exchange market), bank loans went up by 14.1 percent.
"As for the loans by currencies, GEL loans increased by 18.5 percent, while the growth of the foreign currency loans came in at 10.5 percent excluding FX effect", said the bank.
According to the bank, the dollarization still remains high, however its so-called natural level also has to be taken into account.
"In particular, external inflows to GDP ratios stands at around 70 percent indicating that many of the businesses and households have FX income stream. Also, Georgian banking system has a proven track record of sound macro as well as micro risk management."
While banking sector still has dominant role, important to highlight that in recent years corporate bond market has started to develop as well, said the bank.
(1 USD = 2.89 GEL on August 6)