Especially High Rate of Deposit Growth is fixed in National Currency
01 September, 2005
In July Lari deposit volume of legal and private persons was increased by 31% in comparison with the June similar index which is record high index during 7 months of 2005. The rate of Lari deposit growth in June compared with May data was 13%. The same kind deposit volume in foreign currency regarding June indices increased only by 6%.
The recent statistics of the banking system proves Lari deposit increase tendency and the growth of confidence to the national currency accordingly. In the reporting period of the current and last years, in spite of the large portion of demand deposit in the whole deposit volume in the national currency, compared with the last year, the volume of the time deposit was significantly increased. This indicates that the national currency with settlement function gradually becomes more attractive in the view of keeping savings.
During seven months of the current year in the banking system of Georgia the volume of deposits in the national currency as well as in foreign currency was Lari 669 mln which is by 47% more than in the similar period. It should be mentioned that private persons deposits are about 60 % of commercial banks total deposit obligations. Moreover, deposit growth rate in the national currency attracted by commercial banks in analyzing period significantly exceeded the amount of attractive deposits in foreign currency, in particular, during 7 months legal and private persons deposits attracted by commercial banks were increased by 240% compared with indices of the similar period in the last year and amounted to Lari 81 mln. The same deposits in foreign currency increased by 36% compared to the same period index and amounted Lari 588 mln.
It should be noted that by the statistical data of commercial banks deposit volume increases in the circumstances of unchanged interest rate.
As in the last year, this year time deposit interest rate is on average 9-10% and demand deposit -3%. By the evaluation of Roman Gotsiridze, the President of the National Bank of Georgia, the mentioned result has several reasons: stable Lari, low inflation, growth of investments and increased confidence of people to the banking system.