Tbilisi (GBC) – The NBG’s calibration cannot affect consumer loans, but if we imagine (according to the NBG's recommendation) what would happen without calibration, then it has its effect.
As of 01.11.2022, the consumer portfolio of banks amounts to 7.5 billion GEL and is 17.3% of total lending (GEL 43.2 billion) (01.11.2021 – 5.8 billion; 13.97%). The annual growth is 29.3%.
Calibration, this flexible basket, appeared in the supervision of banks in 2016 and acquired a special meaning in 2022. It involves a supervisory package for changing various parameters. This includes recent loan regulations, including the reduction of PTI from 50% to 25% for low-income borrowers (≤ ₾1,500); 3% reinsurance of a variable installment loan (if the borrower is required to have an additional income: +3% assessment of solvency, if the loan price increases by 1, 2 or 3%, it would not be difficult to repay); short-term mortgages from 15 to 10 years and consumer loans from 4 to 3 years; Encouraging GEL portfolio (loan/deposit) banks and currency restrictions... in the same basket are capital buffers, etc. For system banks (TBC/BOGG/LB). Soon, the countercyclical buffer will also weigh on the basket. Which makes the borrower's burden worse, despite the fact that the NBG wants it to lighten their burden.
The president of the NBG has said many times that when reality creates the only solution, increasing the price of money is better than impotence. But not for the borrower. There is no way out for those with an income of GEL 1,500, because they are in a hopeless situation. If he takes an overpriced loan, he will have no money to repay.
According to the NBG’s statistics, the largest number of bad loans in the retail portfolio of banks are consumer loans (6% - 400 million GEL). The highest - 4.4% in the Liberty portfolio.
Banks with consumer loan (including problem loans)