Private credit by deposit money banks to GDP (%)

This indicator reflects the proportion of private sector credit extended by deposit money banks and other financial institutions relative to the nation's gross domestic product, providing insight into the financial intermediation and the health of the banking sector. By utilizing a deflation method that incorporates both the end-of-period and average annual consumer price indices, it ensures that the credit figures are adjusted for inflation, enabling a more accurate assessment of real economic activity. Data is sourced from the IMF's International Financial Statistics, which includes comprehensive information regarding local currency GDP and CPI metrics. This ratio serves as a vital gauge for understanding credit's role in economic growth and can help identify trends in financial stability and accessibility for businesses and households alike. Source: