Notes to Consolidated Financial Statements continued Thousands of Georgian Lari 27. Risk Management continued Credit risk continued The table below shows the credit quality by class of asset in the statement of financial position, based on the Group’s credit rating system. A defaulted financial asset that is past due more than 90 days is assessed as a non-performing loan or as determined on individual basis based on other available information regarding financial difficulties of the borrower. As at 31 December 2018 Cash and cash equivalents Stage 1 Total High grade 315,788 315,788 Standard grade 302,981 302,981 Low grade 765 765 Not rated 94,347 94,347 Balance at 31 December 2018 713,881 713,881 As at 31 December 2018 Amounts due from credit institutions Stage 1 Total High grade 29,744 29,744 Standard grade 1,256,325 1,256,325 Low grade – – Not rated 19,886 19,886 Balance at 31 December 2018 1,305,955 1,305,955 As at 31 December 2018 Investment securities measured at FVOCI – debt instruments Stage 1 Total High grade 835,357 835,357 Standard grade 1,109,784 1,109,784 Low grade 6,246 6,246 Not rated 71,531 71,531 Balance at 31 December 2018 2,022,918 2,022,918 As at 31 December 2018 Commercial loans at amortised cost Stage 1 Stage 2 Stage 3 POCI Total High grade 1,327,033 59,862 – – 1,386,895 Standard grade 527,070 160,192 – – 687,262 Low grade 102,328 73,296 – 6,050 181,674 Not rated 422,729 34,480 – – 457,209 Defaulted Non-performing – – 187,641 – 187,641 Other – – 54,778 987 55,765 Balance at 31 December 2018 2,379,160 327,830 242,419 7,037 2,956,446 258 Annual Report 2018Bank of Georgia Group PLC