The banking sector of Georgia is small in comparison with that of other eastern European countries and it has its weaknesses. Its two main problems are a high level of dollarisation – too many loans and deposits denominated in US dollars – and unsustainable lending to non-creditworthy individuals.
On the other hand, its banks have a relatively low level of non-performing loans (NPLs). They proved themselves resilient in the 2014-16 regional currency crisis and are now cashing in on the country’s rapid economic growth. Furthermore, its two biggest banks, TBC Bank (with 38% of total sector assets) and Bank of Georgia (with 35%), both listed on the London Stock Exchange, are performing strongly, with the former expanding into foreign markets.
