Economy Annex
Bank debt to GDP
200
Financial Intermediation
Prudent Regulation Ensuring Financial Stability
High Regulatory Capital Requirement: Top 5 Banks average
Tier I capital adequacy ratio (NBG standards)– 14.2%, Bank of
Georgia 15.8% (BOG standalone BIS Tier I Capital
adequacy ratio 24.6%)
High level of liquidity requirements from NBG at 30% of
Liabilities, Bank of Georgia 34.8%
180
160
140
120
100
2880
60
400
40
20
20
22.3 24.3 28.9 33.1
41.5
45.7 47.0 47.3 49.5
67.9
114.6
90.4
76.0 76.9
186.0
Resilient Banking Sector
Demonstrated strong resilience towards both domestic and
external shocks without single bank going bankrupt
No nationalization of the banks has occurred, no government
bail-out plans have been required, no Government ownership
since 1995
**Excess liquidity and excess capital that has been accumulated
by the banking sector to enable boosting the financing of the
economic growth
Very low leverage of population with Retail Loans below 10%
of GDP with and Total Loans at c. 30% of GDP resulted in
contained number of defaults during the global crisis (Average
LLP by BoG standalone as of end Q2'10 at c. 7%)
Russia
Bulgaria
Romania
Turkey
Georgia
Azerbaijan
Armenia
Banking sector assets
GEL mln
12,000
10,000
8,000
6,000
4,000
Poland
Belarus
CAGR 33%
Kuwait
Ukraine
Bahrain
UAE
USA*
EU*
9,846
8,865
8,293
2,271
7,208
1,550
2,069
1,430
4,227
5,202
5,455
749
4,524
4,425
2,548
1,697
287
2,000
2.585
1,336
275
1,645
900
389
522
616
893
1,353
1,860
1,699
2,372
2003
2004
2005
2006
2007
2008
2009
2010 YTD
*Includes only loans to households
Labkon
BANK OF GEORGIA
www.bog.ge/ir
Cash Net Loans Other Assets
October 2010
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