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Nov 22, 2018
Countercyclical buffer remained unchanged at 0%
- The Financial Stability Committee of the National Bank of Georgia on November 21, 2018, meeting decided to keep the countercyclical buffer unchanged at 0%.
- According to the Committee, developments in the financial sector and the balance of risks has not changed significantly since the previous committee meeting. The loan growth, adjusted for the exchange rate effect, remains around 18% and loans to GDP ratio exceeds its long term trend.
- The Committee expects the tighter PTI and LTV requirements, which will come into force on January 1, 2019, to push the credit to GDP ratio closer to its long term trend.
- Financial stability committee will wait to see the impact of new regulations on the lending growth and will make the future decisions regarding the countercyclical buffer accordingly.