The National Bank of Georgia has published its 2026 Financial Stability Report and left the cyclical component of the countercyclical capital buffer unchanged, maintaining the stance taken in May. The banking sector retained healthy capital and liquidity as of August, while the loan-to-gross domestic product ratio remained below its long-term trend. Banks will continue building the buffer’s neutral component under the existing schedule. Annual credit growth, excluding exchange-rate effects, reached 14.8% in August, driven mainly by business lending. The negative credit-to-GDP gap widened during the first half of 2026 amid strong economic growth, but the Financial Stability Committee expects the ratio to move toward its long-term level as growth gradually normalizes and credit activity remains sustained. The committee also recalibrated the payment-to-income framework to reflect increases in wages and other nominal indicators while preserving the existing macroprudential stance. The income cutoff below which the 25% payment-to-income limit applies will rise from GEL 1,500 to GEL 2,000 on Feb. 1, 2027, and to GEL 2,500 on Sept. 1, 2027. The phased implementation is intended to avoid a sharp one-time effect and keep borrower risk classifications aligned with current income distribution and debt burdens.
National Bank of Georgia keeps countercyclical buffer unchanged, raises income cutoff for 25% payment-to-income limit in stages
The National Bank of Georgia kept the countercyclical capital buffer’s cyclical component unchanged as the banking sector remains well capitalized and liquid and the credit-to-GDP gap stays negative. It will raise the income cutoff for the 25% payment-to-income limit from GEL 1,500 to GEL 2,000 in February 2027 and GEL 2,500 in September 2027 to account for nominal income growth while preserving its macroprudential stance.