Georgia to Double Deposit Insurance Coverage Limit

From January 1, 2027, the maximum compensation for bank deposits in Georgia will rise from 50,000 to 100,000 lari. The change will affect Georgian citizens, foreign depositors, and companies. The Deposit Insurance Agency expects the volume of protected funds to increase by approximately GEL 5 billion.

Which Bank Deposits Will Be Covered

The increase in the deposit insurance limit has been approved and published in Georgia's legislative gazette. Insurance applies automatically, without a separate agreement. It covers time deposits as well as current and card accounts held at credit institutions participating in the scheme.

The maximum payout is 100,000 lari per depositor per bank. If a customer holds several accounts, their balances are combined. For example, with a 60,000-lari deposit and another GEL 50,000 in a card account at the same institution, the agency will reimburse no more than GEL 100,000. A separate insurance limit applies at another credit institution.

Deposit insurance in Georgia covers deposits held by individuals and companies, including non-residents. US dollars and euros are protected on the same terms as lari. If an insured event occurs, compensation is paid in the national currency at the National Bank of Georgia's official exchange rate on the date liquidation begins.

An insured event occurs when a credit institution enters liquidation. Compensation is to be paid within 20 calendar days, while claims exceeding the limit are handled through general liquidation proceedings. Coverage excludes, among others, deposits held by bank executives, major shareholders, financial institutions, and certain restricted-access accounts.

How Deposit Insurance Has Developed in Georgia

Georgia's deposit insurance system has operated since 2018. Its initial maximum payout was 5,000 lari; by 2024, the limit had reached GEL 30,000. Another increase to GEL 50,000 took effect in April 2026. The next threshold will come into force just nine months after the previous change.

Volume of Insured Deposits

By the end of August 2026, the value of deposits held in Georgian banks had reached 77.5 billion lari. Individuals accounted for GEL 39.2 billion and companies for GEL 38.3 billion. Under the existing limit, insurance covered GEL 16.1 billion, or roughly one-fifth of the total deposit portfolio.

Of the insured amount, 14.7 billion lari belonged to individual depositors and GEL 1.4 billion to legal entities. As a result, around 37% of household deposits and less than 4% of corporate funds were protected. This illustrates the considerable gap in insurance coverage between the two groups.

Deposit Insurance Fund Reserves

The deposit insurance fund is financed by contributions from credit institutions and investment income. By October 2026, its portfolio had exceeded 450 million lari. The nominal value of government bonds purchased by the agency reached GEL 453.4 million.

Deposit insurance contributions totaled 7.3 million lari in August. Customers do not pay for deposit insurance. Agency head Levan Todua links the accelerated increase in coverage to growing bank savings and the sector's strong profitability. Additional contributions are expected to strengthen the fund's financial capacity.

Outlook for Businesses and Investors

The Deposit Insurance Agency expects deposit insurance coverage to rise from 16 billion to 21 billion lari. The total volume of bank deposits may remain unchanged. Monthly contributions by credit institutions could grow by 35–40% to GEL 10 million. Experts consider the additional burden manageable given banks' profitability.

International Investment analysts note that the higher limit will primarily extend protection for small businesses' funds. The impact on larger companies will be more limited: a substantial share of corporate deposits will remain above the maximum compensation threshold.

For foreign entrepreneurs, the new limit reduces risks when placing relatively small amounts in Georgian banks. The reform's prospects will depend on further expansion of effective coverage for corporate funds and the accumulation of reserves for payouts. If these indicators improve, deposit insurance could play a more prominent role in financial-market development and services for international business.

FAQ: Deposit Insurance in Georgia

When will Georgia's deposit insurance limit increase to GEL 100,000?

On January 1, 2027. Until then, the maximum compensation is 50,000 lari per depositor per bank.

Are accounts held by foreign nationals and non-residents of Georgia insured?

Yes. Insurance covers deposits and current accounts held by individuals and companies, regardless of residency. No separate agreement is required.

Are balances across multiple accounts at the same bank combined?

Yes. All account balances belonging to the same depositor at one credit institution are added together. From 2027, the maximum compensation will be GEL 100,000.

If I have deposits at two banks, is there a single coverage limit?

No. A separate compensation limit applies at each bank. Funds held at different institutions are not combined.

Are US dollar and euro deposits insured?

Yes, but compensation is paid in lari. Foreign-currency deposits are converted at the National Bank of Georgia's official exchange rate on the date of the insured event.

What happens to the portion of a deposit exceeding GEL 100,000?

The agency reimburses funds up to the coverage limit. Any remaining amount may be claimed through the bank's liquidation proceedings under general rules; recovery is not guaranteed by the insurance scheme.

When do compensation payments begin after a bank's liquidation?

Within 20 calendar days of the insured event. The agency publishes instructions and identifies the credit institution through which depositors can receive payments.

Do depositors have to pay for insurance?

No. Coverage is automatic and funded by contributions from participating credit institutions.