Tbilisi (GBC) - "Cartu" reduced the dollarization of its credit portfolio.
According to the bank's 8-month report (01.09.2024), 59% of lending (equivalent to 565 million GEL) comes from foreign currency loans. In the same period of the previous year (L.Y. 1.09.2023), 63% came from foreign currency lending.
According to the NBG’s regulation, which is adjusted to the dollarization framework, the bank is required to have capital with a higher dollarization ratio (unhedged currency credit risk buffer).
Up to 40%, the risk weight is equal to 40%. For every additional 1%, the capital requirement is calculated by 3% more. Accordingly, "Cartu" holds more capital than, for example, "Liberty".
So is the reserve requirement for deposits. The upper limit (20%) applies to funds raised in foreign currency, >70% dollarized.
The portfolio of "Cartu’s" deposits is 1.182 billion GEL as of September 1 and up to 81% (80.7%) - 952 million GEL is in foreign currency (L/Y - 83.5%)