AP Headline News – Feb 16 2024 15:00 (EST) https://t.co/OnjVplDIGh via @Audioboom
— Michael Novakhov (@mikenov) February 16, 2024
Day: February 16, 2024
The National Bank of Georgia has eased requirements for Russian citizens, lowering the share of their deposits in foreign currency that cannot be immediately withdrawn from 80% to 40%.
Prior to this decision by the NBG’s Financial Stability Committee Georgian banks were obliged to place at least 80 percent of Russian deposits exclusively in liquid assets and were able to allocate no more than 20 percent of the deposits to other assets, which limited the banks’ ability to finance other lending activities with deposits from Russian citizens.
The previous liquidity level of 80% for Russian citizens’ deposits was set by the NBG in May 2023. At the time, the NBG cited uncertainty about the timeframe for Russians to keep their deposits in local banks. But now, the NBG says, it has become clear that Russian citizens are in no hurry to withdraw their deposits, even though Russian immigrants who moved to Georgia for permanent residence after the start of the war in Ukraine are returning to the Russian Federation or leaving for other countries.
As February 16, 2024, the total amount of deposits of Russian citizens in Georgian banks is GEL 3.5 billion ($1.32 billion). Thus, banks will be able to more freely dispose of an additional GEL 1.4 billion from the deposits of Russians.
According to the information of the NBG, the deposits of Russian citizens make up 7% of the total deposits, or GEL 3.5 billion. Foreigners hold a total of GEL 7.6 billion in Georgian banks.
The Financial Stability Committee notes that banks are recommended to conduct a regular analysis of the composition of non-resident deposits and, if necessary, to mitigate risks with an adequate internal liquidity buffer.
The National Bank of Georgia has eased requirements for Russian citizens, lowering the share of their deposits in foreign currency that cannot be immediately withdrawn from 80% to 40%.
Prior to this decision by the NBG’s Financial Stability Committee Georgian banks were obliged to place at least 80 percent of Russian deposits exclusively in liquid assets and were able to allocate no more than 20 percent of the deposits to other assets, which limited the banks’ ability to finance other lending activities with deposits from Russian citizens.
The previous liquidity level of 80% for Russian citizens’ deposits was set by the NBG in May 2023. At the time, the NBG cited uncertainty about the timeframe for Russians to keep their deposits in local banks. But now, the NBG says, it has become clear that Russian citizens are in no hurry to withdraw their deposits, even though Russian immigrants who moved to Georgia for permanent residence after the start of the war in Ukraine are returning to the Russian Federation or leaving for other countries.
As February 16, 2024, the total amount of deposits of Russian citizens in Georgian banks is GEL 3.5 billion ($1.32 billion). Thus, banks will be able to more freely dispose of an additional GEL 1.4 billion from the deposits of Russians.
According to the information of the NBG, the deposits of Russian citizens make up 7% of the total deposits, or GEL 3.5 billion. Foreigners hold a total of GEL 7.6 billion in Georgian banks.
The Financial Stability Committee notes that banks are recommended to conduct a regular analysis of the composition of non-resident deposits and, if necessary, to mitigate risks with an adequate internal liquidity buffer.
The killing of Alexei #Navalny by #Putin‘s regime reveals the brutal, inhuman face of the Russian authorities. Putin, who has killed thousands of innocent citizens of #Ukraine and occupied Ukraine’s sovereign territories there, faced no obstacles in killing Alexei Navalny.… pic.twitter.com/GigvBdBHOF
— Robert Ananyan (@robananyan) February 16, 2024