Domestic credit provided by financial sector (% of GDP)

This indicator represents the total volume of credit extended by the financial sector to various economic entities, excluding net credit to the central government. It encompasses a wide range of financial institutions, including central banks, commercial banks, and other financial enterprises that generate liabilities like time and savings deposits. Notably, this category includes finance and leasing firms, microcredit lenders, insurance companies, pension funds, and foreign exchange entities. By assessing the proportion of this credit against a nation’s GDP, one can gauge the financial sector's role in stimulating economic activity, influencing investment, and supporting various sectors, ultimately revealing insights into the financial health and accessibility of capital within the economy. Source: