Key players on the retail deposits market have lowered deposits interest rates.
TBC Bank and Bank of Georgia with 75% ratio on the market (4.4+3.7 billion) have reduced the annual interest rate to 9.4%. Liberty Bank (1.03 billion) cut the rate to 9% on Patriot deposit, while annual interest rate for term deposit is 11.5%.
The mentioned changes were preconditioned by a number of factors on the banking market, increased demand for capital, additional buffers created for capital of the mentioned commercial banks, obligatory insurance of depositors and growing awareness of bank clients. The borrowers have become more informed and they do not agree on any loan offers. Therefore, commercial banks care for improving bank product conditions and this is reflected in pricing policy.
The banking sector and its lobbyist talk about the new trend. Potential borrowers have not discerned loan cheapening tendencies yet. Only depositors have seen lowered interest rates. Bankers assert that this decision is in direct relation with loan interest rates.