Baku, Azerbaijan, September 16
By Tamilla Mammadova – Trend:
Non-bank deposits in Georgia account for the majority of total banking sector liabilities, reaching about 60 percent of total liabilities in 2018, Trend reports via the report of European Investment Bank (EIB).
The report further says that funding of Georgia’s commercial banks is diversified.
In 2018 and compared to the preceding year, all types of funding in Georgia increased in volume with the exception of inter-bank deposits, which saw a decline of 18 percent.
The biggest contributor to the volume of funding was "borrowings (including bonds) and deposits", followed by "current accounts", which make up around 25 percent and 18 percent of total liabilities, respectively.
Additional data from the 2018 EIB for Georgia show that the least available source of funding was wholesale debt securities. This reflects the relatively under-developed structure of capital markets in Georgia. Deposits from both retail and corporate clients are the most important sources of financing.
In January 2019, there were 17 insurance companies and three pension schemes in the Georgian financial sector. Altogether they represent 1.2 percent of total financial sector assets (2017).
This share corresponds to 580.2 million lari and reflects an increase of 7 percent in net assets from the previous year. The majority of assets were domestically owned. Supervision of the insurance sector has been delegated to an independent agency which reports directly to the government.
(1 USD = 2.96 GEL on September 16)