Credit growth in Georgia to approach steady level in medium term
Baku, Azerbaijan, September 18
By Tamilla Mammadova – Trend:
The Financial Stability Committee of the National Bank of Georgia left the countercyclical buffer unchanged at 0 percent, Trend reports, citing the National Bank of Georgia.
According to a press release issued by the bank, from the beginning of 2019, the growth of loans as a result of the introduction of regulation of lending to individuals is characterized by the expected trend.
“In August 2019, the annual growth of the loan portfolio, excluding the impact of the exchange rate, amounted to 14.6 percent, mainly due to an increase in lending to legal entities. It should be noted that the ratio of loans to GDP still exceeds the long-term trend, which reflects the effects of excessive growth in loans and exchange rates in recent years. According to the committee, the current growth trend in lending will approach steady levels in the medium term,” the bank said.
The National Bank is actively developing the framework for financial stability policy.
“The National Bank of Georgia will continue monitoring the country's financial stability, assessing internal and external risks and will use all available tools to minimize possible risks,” the bank said.
The next meeting of the Financial Stability Committee will be held on November 27, 2019.