Review of Banking Sector in 2015: PMCG
Taking exchange rates into mind, the growth rate within the deposits is 5.4% as well as growth rate of the loans is 5.8%. In this particular period, the normal interest rates on deposits denominated in foreign exchange declined by 0.6 percentage point in addition, on deposits denominated inside the national currency increased by 1.1% percentage.
Regarding loans, loan rates on loans denominated in foreign currencies declined by 1.1 percentage point is undoubtedly loans denominated in GEL declined by 0.6% point.
The share in the deposits denominated in foreign currency in complete deposits increased by 10.0%, even though the share within the loans denominated inside foreign currency increased by 3.7%.
However, taking exchange rates under consideration, the change during these indicators are 4.5 percentage point and -2.2 percentage point, respectively. Therefore, the level of the dollarization in the deposits increased, as the higher level of dollarization of loans declined.
In December 2015, the total number of the entire deposits, excluding interbank deposits, amounted to 15 505 mln GEL, which exceeds the indicator of 2014 by 24.8%. The total number of deposits denominated within the national currency declined by 6.1%, although number of the deposits denominated in stock markets increased by 45.4%, but taking fx rates in mind, turn out to be rate for this indicator is simply 13.2%.
In 2015, the common rate on the deposits denominated in stock markets was 4.6%, that’s 0.6 percentage point under precisely the same indicator within the previous year. In this period, the common rate of interest for the deposits denominated inside the national currency increased (0.1 percentage point) and equaled 7.7%.
In December 2015, the volume of loans from commercial banks (excluding interbank loans) recorded 16 154 mln GEL, which exceeds the attached indicator in 2014 by 23.5%. Here, the total number of the loans denominated in national currency increased by 11.8%, although volume of the loans denominated in foreign exchange increased by 31.0%, but taking fx rates into mind, the increase rate with the loans denominated in foreign currencies was merely 2.0%.
In 2015, the average interest rate within the loans denominated in foreign currencies was 10.8%, and that is 1.1 percentage point lower when compared to indicator of 2014. In this particular period, the regular rate within the loans denominated in the national currency declined by 0.6 percentage point and equaled 17.6%.
In December 2015, the most significant sectors by number of loans to the economy are industry (12.5%), trade (11.4%) and transactions in solid estate (4.0%).
In this period, when compared to December 2014, the total number of loans towards industrial sector (19.4%; 307.1 mln GEL) and also to the transactions in actual estate (36.5%; 162.3 mln GEL) more than doubled, while loans declined to trade (-11.3%; 220.8 mln GEL).