New NBG regulations for raising the crediting portfolio to 15% from 12% annually are standard and acceptable, TBC Bank director general Vakhtang Butskhrikidze noted right after the working meeting dedicated to the latest regulations on retail crediting.

“It is important is always that the National Bank of Georgia (NBG) and now we, commercial banks, assume that the fresh NBG regulations for raising the crediting portfolio from 12% to 15% annually frequently occurs and acceptable. Averaged distribution of portfolio is often as follows: the retail credits portfolio will rise to 5%-7% as well as the remaining portion may go to medium and small corporate business crediting; We find this regulations acceptable too. Concurrently, the banking sector plus the National Bank have different considerations on expected influence of the new regulations on employment and economy”, Butskhrikidze said.

At today’s presentation how the banking sector held for NBG, Butskhrikidze noted the fact that new regulations will slow down the economic growth pace by 0.8% for the year.

We remind you that based on the NBG forecasts, the new regulations will lessen the economic growth by 0.6%, while the Banks Association forecasts 3% downturn.


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