Fitch: Georgian banks stable
Wednesday, December 18Fitch Ratings says in a new report that outlooks for most banking sectors in Georgia and the Commonwealth of Independent States (CIS) in 2014 are stable.
According to the report, this reflects Fitch’s expectation of positive economic growth across the region, which should support the banks’ asset quality and performance.
Fitch’s expects Georgian banks to again perform soundly in 2013.
"Georgian banks should benefit from a pick-up in economic activity following the completion of the electoral cycle, supporting growth in business volumes and helping to maintain asset quality. However, downside risks remain, given the close links between the political climate, investment levels and market confidence in the country,” Fitch claimed.
However, prospects for banks in commodity-driven economies (Russia, Kazakhstan, Azerbaijan and Uzbekistan) are more settled, while there is greater uncertainty about macroeconomic stability and/or policy in Ukraine, Belarus and (to a lesser extent) Georgia.
Currently, the banking sector of Georgia is represented by 19 commercial banks, including 14 banks with foreign capital and the branches of three foreign banks. (Agenda.Ge)