The National Bank of Georgia’s Financial Stability Committee decided to leave the cyclical component of the countercyclical capital buffer unchanged, citing healthy capital and liquidity indicators in the banking sector and a still-negative credit-to-GDP gap. Commercial banks will continue gradually accumulating the neutral countercyclical capital buffer. The Committee noted that annual credit portfolio growth, excluding the exchange rate effect, was 13.4% in January 2026, with business loans again accounting for a significant share. As of the fourth quarter of 2025, the credit-to-GDP ratio remained below its long-run trend, and while strong economic growth in 2025 contributed to the persistence of this negative gap, the Committee assessed that the credit-to-GDP ratio will gradually move closer to its long-term level. The next Financial Stability Committee meeting is scheduled for 3 June 2026.
National Bank of Georgia 2026-02-25
National Bank of Georgia keeps cyclical countercyclical capital buffer component unchanged
The National Bank of Georgia's Financial Stability Committee maintained the cyclical component of the countercyclical capital buffer, citing robust capital and liquidity in the banking sector and a negative credit-to-GDP gap. Annual credit portfolio growth was 13.4% in January 2026, with business loans comprising a significant portion. The credit-to-GDP ratio remains below its long-term trend but is expected to align gradually.