Aleksandre Dzneladze, President of the Banking Association of Georgia, announced that Georgia’s two largest banks, TBC Bank and Bank of Georgia, are showing signs of softening.
Speaking to BM.GE, Dzneladze said the combined market share of the two lenders fell to 76.6% of total banking sector assets in the first eight months of 2025. A year earlier, their share stood at 77.9%, marking a decline of 1.3 percentage points.
Dzneladze named two main developments as the cause of this:
- Stronger growth by smaller banks, including Liberty Bank, Basisbank and Credo Bank.
- The entry of new microbanks which have helped diversify assets in the sector.
“The assets of the banking sector have now exceeded GEL 100 billion, almost equal to the country’s GDP,” Dzneladze noted. “While overdue loans are increasing in absolute numbers, their share has consistently decreased over the past five years. In fact, Georgia ranks among the best performers on overdue and problem loans, not just regionally but also compared to the EU.”
Competition
The higher growth rates of mid-sized and smaller banks, Dzneladze argued, are intensifying competition and creating a healthier environment for consumers.
That trend could accelerate further if Liberty Bank and Basisbank proceed with a potential merger. The National Bank of Georgia (NBG) has already issued a preliminary opinion, stating that Basisbank’s possible acquisition of Liberty Bank would not harm competition. A merged institution would hold roughly 9.9% of total sector assets.
Predictions
As Dzneladze pointed out, the mix of new market entrants, the rise of smaller players and potential consolidation among mid-tier banks may lay the groundwork for new licenses, stronger competition and better services for customers.
