International audit company KPMG presented the report on the banking products ordered by NBG
11 March, 2014
In the “Courtyard Marriot” the international audit company KPMG presented the research report ”A Comparative Analysis of Effective Interest Rates. KPMG, a Dutch company and member of “Big Four” of international audit companies, carried out this research by NBG order, and its main purpose was comparison of interest rates on Georgian commercial banks’ credit products and respective indicators of East European, Balkan, Caucasus and Central Asia countries.
“By request from the NBG, KPMG carried out research, the main purpose of which was to compare interest rates on the credit products among different countries. The research covered East European, Balkan, Caucasus and Central Asia countries. The result shows that in Georgia the interest rates on many products are lower than in Kazakhstan, Serbia, our neighbors Azerbaijan and Armenia and are higher than in Poland and in more developed East European countries, which wasn’t surprising to us. It’s no surprise that Georgian banking sector is a real champion both in attracting FDI and as an employer. It is the locomotive for the economic development of Georgia. Finally, I would like to express my hope, that this research breaks the absurd stereotypes that in Georgia interest rates are one of the highest, which, of course is not true. Interest rates reflect the real situation in the Georgian economy”- said Giorgi Kadagidze.
The research presentation at “Courtyard Marriot” was attended by the governors of Georgian commercial banks, the representatives of international financial organizations, banking and microfinance associations and experts.
KPMG selected 5 countries for this research: Azerbaijan, Poland, Serbia, Armenia, and Kazakhstan and at least 2 leading banks in the financial market from these countries. For research purpose KPMG selected different credit products most often in the Georgian banking market, and real and effective interest rates for these products were compared to those in the aforementioned countries.
The research focused on the following credit products: Fixed and floating interest mortgages, secured and unsecured consumer credit, credit cards, corporate credit - for financing the working capital and capital expenditures, credit for small and medium size businesses - for financing the working capital and capital expenditures.
The comparative research on the nominal and effective interest rates showed that, in most cases the interest rates on the credits are higher in Kazakhstan, Azerbaijan, Serbia and Armenia than in Georgia. As for Poland, indicators here are lower than in Georgia.
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