Volume of loans issued by commercial banks down in Georgia
BAKU, Azerbaijan, May 26
By Tamilla Mammadova – Trend:
The volume of loans issued by commercial banks in Georgia (excluding interbank loans) in April 2020 decreased by 787.06 million lari ($247.3 million) or by 2.25 percent compared to the previous month and stood at 34.21 billion lari ($10.7 billion) by May 1, 2020, Trend reports via the National Bank of Georgia.
The volume of loans in national currency decreased by 87.35 million lari ($27.4 million) or by 0.61 percent and the volume of loans in foreign currency decreased by 699.71 million lari ($219.9 million) or by 3.40 percent in the same period.
By the end of April 2020, the total volume of national currency denominated loans to resident legal entities issued by commercial banks amounted to 4.50 billion lari ($1.4 billion), 0.78 percent less compared to the previous month, and foreign currency denominated loans constituted 12.12 billion lari ($3.8 billion), 3.12 percent less.
During April 2020, the volume of lending to resident household sector increased by 1.84 percent or 312.02 million lari ($98.06 million), and stood at 16.67 billion lari ($5.2 billion) by May 1, 2020.
Larization ratio for total loans totaled 41.91 percent by May 1, 2020 and increased by 0.69 percentage point (exchange rate effect excluded, decreased by 0.12 percentage point), compared to April 1, 2020.
As of May 1 2020, the banking sector in Georgia is represented by 15 commercial banks, including 14 foreign-controlled banks. The total assets of Georgian commercial banks (in current prices) decreased by 1.01 billion lari ($317.4 million) or by 2.01 percent in April 2020, compared to the previous month, and constituted 49.12 billion lari ($15.4 billion).
The banking sector’s equity capital stands at 5.05 billion lari ($1.5 billion), which makes up 10.29 percent of the commercial banks total assets.
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