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Georgia-Based Commercial Banks have Increased Noninterest Incomes.

In January-September, noninterest incomes totaled 1.2blin GEL, up 509mln GEL year on year (+78%), including incomes from commission fees and services constituted 318mln GEL (Q3/2016 – 225mln).

Time to time commercial banks have to safeguard the rate limited by the supervisor.

Borrowers, who plan to pay off loans 6 months earlier before the maturity period expiry, will not pay 2% commission fee. If the credit agreement expires in 6-12 months, then borrowers will pay 0.5%. If the agreement expires in 1-2 years, borrowers will pay 1%.

The 2% margin was introduced in 2011, but National Bank of Georgia (NBG) lowered it for commercial banks, initially, while new regulations became applicable to microfinance organizations in 2013. Before, the rate was about 7-8%.