INTERNATIONAL DISCUSSIONS ON BANK CREDIT AND ECONOMIC GROWTH RELATIONSHIP

The main problem of the Georgian economy is the large scale disproportion of the successful sector of the banking sector and the often unsuccessful development of the real sector of the economy. It should be noted that this disproportion is a subject of consideration in contemporary economic literature and our research is an attempt to broaden the issue and share ideas in international scientific circles. The main problem that is in the research is the impact of the banking sector's credit portfolio and the functioning of credit markets on the economic growth of the country. In this regard, the macroeconomic stabilization and accelerated economic growth of the country is very important to identify, study and analyze the impact mechanisms of the credit market factors operating on economic growth. The study provides a survey of the region and country, from which it becomes clear that the banking savings and bank credits are directly affecting economic growth. The survey has analyzed two models of impact on economic growth and concludes that the following recommendations include: Increase in income per capita, decrease in unemployment and effective use of bank credits and savings to accelerate economic growth in the country. Other examples of international research are linked to improving the quality of financial development and economic growth and the long-term cause-effective relationship between financial development and economic growth is determined. This study measures the financial development of the country with three indicators: М2 depending on GDP, private sector bank lending ratio, and the GDP to the GDP in the banking sector. The real growth of real GDP is seen as a measure of economic growth. The results of the research showed that there is a long-term positive equilibrium relationship between all three financial indicators and the real GDP growth rate. As a result of the research, it was established that there is a bilateral causal link between the massive money mass (М2) and the GDP and the GDP growth rate, and the one-way causal linkage is the internal credit of the banking sector. In terms of GDP and GDP growth in the short term. A number of scholarly research finds that financial development and structure are closely linked to economic growth. On the other hand, the financial development of the country has a positive impact on attracting investments but relatively low correlation with growth. Empirical research has shown that a number of financial indicators are strong and positive in correlation with economic growth. The study, conducted by the International Monetary Fund, is of interest to the credit boom and the relation of the economy. Access to finance and investment, economic growth and broad support for an everyday occurrence, but when it gets dramatically accelerated expansion of the character, it can take the offensive character, weak lending standards conditions, it is possible to get limitless use of the loan proceeds and the asset price bubble of dangerous Husks. Usually the "credit booms" are related to the financial crisis, "credit booms" are also dangerous in the best situation, and in the worst case we have a much harder result. In terms of economic growth, it is very interesting to process the warning indicator of system banking crisis. Special attention is paid to the factors of banking crisis such as: private sector credit boom, non-credit lending, credit rating relative to GDP and etc. The research focuses on the study of the population's demand for credit, as the review of economic literature shows that the demand for credits significantly determines the prices on real estate. And, as the survey shows, the interest rate increases in credit have negatively impacted the population's demand for credits.  Also, research has proven high correlation between credits and GDP, which can be successfully identified in the long term.  A number of research studies show that the state sector credit volume increase of the public debt growth leads credits the reduction of the private sector in low - income countries, while high-income countries, the private sector lending increasing public sector credits and reduced central government debts. Inflation has been negatively impacted on financial climbing and positive growth of positive GDP.  The stable development of the economy in the country significantly ensures the banking sector's performance. For developing countries, the existence of economic links between financial development and economic growth is crucial. Two directions of financial development are used Comparison of private sector credits with GDP volume and the second monetary aggregate (М2) ratio with GDP volume. As a result of the research, positive correlation between relationships between financial development and economic growth has been established. The conclusion that combines many of the research and opinions given in the survey can be as follows; In economic terms, the main function of banks is to increase the lending fund to increase investments in the economy. Thus the development of the country depends on the economic point of view of investing. Banks have the ability to lead to economic growth and their ability to accelerate the economic development of the country through effective distribution of resources.