The Scope of Deposit Insurance is on the Increase
Insured Deposits amount to 1.7 billion GEL.
Toward the end of 2018, the existing deposits in commercial banks came to 23,904,154,457 GEL. Among the deposits made by physical persons was 12,503,391,595 GEL (in national currency 3,124,016,263 GEL, in foreign currency - 9,379,375,332 equivalent), but legal entities deposited 11,400,762,862 GEL (in national currency - 5,515,099,040 GEL, in foreign currency - 5,885,663,823 GEL equivalent).
In Georgia, the deposits insured by the existing deposit insurance system come to 1,750,345,861 GEL; among them, national currency comes to 1,089,065,777 GEL worth of insured deposit, but the insured deposit amount in foreign currency comes to the equivalent of 661,280,083 GEL. For comparison, at the beginning of 2018 the worth of insured deposits was 1.4 billion GEL.
The total amount of regular insurance contributions to the banks in December came to 1,389,239,130 GEL, which banks paid off in January.
For reference, residents and non-residents alike have all types of deposits insured by the existing deposit insurance system in Georgia, among which are the current accounts as well as fixed term and upon-request deposits.
Since all active commercial banks are members of the deposit insurance system, the insurance can apply to existing deposit in any of the banks in Georgia. The insurance limit is 5,000 GEL in any currency. Insurance does not apply to deposits of those individuals whose right to access the deposit is restricted according to Georgian legislation. Also, deposits of legal entities, commercial bank administrators, and their family members, the deposits of shareholders holding at least 5% or more of the bank’s capital, and the deposits of their family members, are all excluded from insurance.