Fitch Ratings assesses Georgia's banking system

An excessive number of banks operate in Georgia given the volume of the economy, Fitch Ratings Manager James Watson said in an interview with the Georgian newspaper The Financial.

Watson is responsible for Georgia, Azerbaijan, Kazakhstan, Ukraine, Armenia, Belarus and Uzbekistan's bank ratings.

He notes, Georgian banking business is not of such a scale to ensure the stability of banks, however, he adds, the largest banks have strong foreign owners.

Watson says the sector is well capitalized, comfortably liquid with stable asset quality. The main difficulties, in Watson's opinion, are potential fluctuations in the economy and the high lending index in foreign currency.


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