Domestic credit to private sector by banks (% of GDP)

This indicator captures the proportion of financial resources allocated by banks to the private sector, reflecting the overall health and accessibility of credit within an economy. It encompasses various forms of funding, including loans, non-equity securities, and trade credits, which together facilitate business expansion, consumer spending, and investment activities. By quantifying these financial commitments as a percentage of Gross Domestic Product (GDP), it provides insights into the effectiveness of financial institutions in fostering economic growth. Moreover, in certain contexts, this includes credit extended to public enterprises, illustrating the intertwined nature of public and private financing and highlighting the role of banks in supporting national economic development. Source: