Banking Sector Develops in the Most Dynamic Way in Georgia as Compared with the Countries of the Region
28 December, 2005
As compared with the countries of the Region the banking sector in Georgia develops in the most dynamic way. None of the CIS, or East European states had the banking sector development rate of a similar scale during the past 5 years period. Here are several examples:
The volume of loans increased by 69% (This index was the highest for Ukraine in 2000-2004 - (37%), Latvia (36%), Bulgaria (29%), Russia (25%) and etc. The peak was reported in Lithuania in 2003 - 60%. The similar index for Ukraine in the same year constituted 55%);
It is most impressive, that the volume of loans in the domestic currency increased by 233%;
Banks’ assets increased by 58%;
Banks’ profits increased by 152%;
Total deposits (accounts) increased by 40% and deposits in Lari – by 90%;
The dolarization index decreases. Last year it equaled 77.5% and this year - only 69%. This fact points to the growth of credibility towards the national currency – Lari;
International foreign exchange reserves constituted USD 470 mln, as compared with the past year the growth is about USD 100 mln;
Inflation is within the limits of 6-7%, while many countries were unable to stand the effect of the oil price growth;
Thus, if we consider the past year as the year of a budget boom, we can call the current year the year of a banking boom.