Tbilisi (GBC) - The National Bank of Georgia’s Financial Stability Committee has decided to keep the cyclical component of the capital countercyclical buffer unchanged, citing a normalization in credit growth and sustainable economic performance.

According to the NBG, annual lending growth in Georgia stood at 12.7% in October 2025, lower than the high levels of credit expansion seen in previous periods. The Bank noted that the negative gap between economic growth and the ratio of loans to GDP is decreasing, reducing the need to adjust the buffer at this stage.

“Banks continue to maintain healthy capital and liquidity ratios. Business loans contributed significantly to credit growth, and the ratio of loans to GDP remains below the long-term trend. Strong economic growth in the first three quarters, coupled with the normalization of credit activity, has gradually closed the negative gap in the loan-to-GDP ratio,” the NBG said.

The Committee also confirmed that commercial banks will continue to accumulate the neutral component of the countercyclical capital buffer gradually. At present, the cyclical component requires no adjustment, reflecting the stability and resilience of the Georgian banking sector.