Note on Bank Credit: September 2023 to May 2024
Summary — This note analyzes the evolution of bank credit in Haiti from September 2022 to September 2023, focusing on its role in transmitting monetary policy and its sectoral distribution. It highlights the challenges of stimulating private investment in a context of structural constraints and multidimensional crisis.
Key Findings
- Bank credit declined by approximately 10% in 2023 after growing by 14.1% the previous year.
- The ratio of credit to deposits has remained below 30% since 2022, indicating weak financial intermediation.
- The quality of the credit portfolio deteriorated in 2023 due to security conditions impacting businesses.
- The real contraction of credit to the economy is significant, at -31.4% in 2023.
- The dollarization of credit remains below 50% due to central bank measures.
Full Description
This note examines the evolution of bank credit in Haiti between September 2022 and September 2023, assessing its role as a channel for monetary policy and its impact on the real sector. It analyzes the sectoral distribution of credit, highlighting implications for economic growth, and examines regional and gender disparities. The analysis considers the context of Haiti's multidimensional crisis, including inflationary pressures and structural constraints, and discusses the challenges for monetary policy and financial inclusion.