(2024-05) BRH Note on Bank Credit, September 2022-September 2023
Summary — This BRH note analyzes private-sector bank credit in Haiti from September 2022 to September 2023, covering the pass-through of monetary policy to lending rates, loan portfolio quality, and the sectoral, regional and gender distribution of credit. It finds a 10% nominal contraction in the credit portfolio, a rise in non-performing loans to 8.51%, and persistent concentration of lending in the Ouest department and among male borrowers.
Key Findings
- Nominal private-sector credit portfolio contracted about 10% in 2023 (real contraction -31.4%), after 14.1% growth in 2022.
- Credit/deposit ratio fell to 26% by September 2023, credit to GDP only 5% versus ~45% regional average.
- Non-performing loan ratio rose from 6.67% (Sep-2022) to 8.51% (Sep-2023), peaking at 11.85% in May 2023, prompting BRH circular 115-3.
- Agricultural credit collapsed 99.2% year-on-year, linked to loan write-offs and insecurity limiting access to Grand Sud farming zones.
- Ouest department's share of credit rose from 60% (2020) to 70% (2023); 67% of bank branches and 79% of deposits are in metropolitan Port-au-Prince.
- Men received 66% of gourde credit and 79.3% of dollar credit, versus 34% and 20.7% for women.
Full Description
Published by the Banque de la Republique d'Haiti (BRH) in May 2024, this note examines bank credit to the private sector over the fiscal year September 2022 to September 2023, a period marked by high inflation (38.7% in 2022), a 20% depreciation of the gourde, and a restrictive monetary stance adopted in August 2022. The nominal loan portfolio contracted by about 10% in 2023 (after 14.1% growth a year earlier), a real contraction of -31.4%, and the credit/deposit ratio fell to 26% by September 2023, its lowest level since 2022. Credit to the private sector represented only 5% of GDP, far below the regional average of around 45%. Lending-rate pass-through remained asymmetric: the average debtor rate on gourde loans rose from 14.75% (Sep-2022) to a peak of 17% (Feb-2023) before easing to 13% by September 2023, while the interest-rate spread in Haiti remains among the highest in the region, comparable only to Jamaica. Loan-portfolio quality deteriorated, with the non-performing loan ratio rising from 6.67% to 8.51% (peaking at 11.85% in May 2023), prompting the BRH to issue circular 115-3 introducing repayment moratoria and restructuring provisions.
The note also documents a sharp fall in incentive-program lending, a 99.2% collapse in agricultural credit linked to loan write-offs and insecurity-driven access constraints in the Grand Sud, and continued sectoral concentration in commerce (36.7% of the portfolio), manufacturing (19.2%) and residential/commercial real estate (17.5%). Geographically, the Ouest department's share of credit rose from 60% to 70% between 2020 and 2023, with 67% of bank branches and 79% of deposits concentrated in the Port-au-Prince metropolitan area. By gender, men received 66% of gourde-denominated credit and 79.3% of dollar-denominated credit, versus 34% and 20.7% for women, reflecting income, employment and financial-access gaps documented in a May 2023 World Bank gender assessment. The note concludes that reviving financial intermediation depends on improved security conditions and reduced uncertainty, alongside continued BRH programs to support SME financing and reduce gender gaps in access to credit.
Notes
Cover page is dated MAI 2024 but describes the reference period as septembre 2022-septembre 2023 (BRH's fiscal-year credit note); used the May 2024 publication date per the doc_id and cover, not the data period, for the title prefix.