The Central Bank of the Bahamas published its June 2025 Bank Lending Conditions Survey, reporting that lending conditions improved further over the first half of 2025 relative to the same period in 2024, supported by stronger private-sector credit demand. Total loan applications rose to 19,081 (up 11.5%), with 15,648 approvals (up 13.7%) and an overall approval rate of 82.0%, while denials fell 4.2% to 1,469. Consumer lending accounted for 94.4% of applications, with 18,018 requests received (up 14.8%) and an average approval rate of 83.0% (up 1.6 percentage points). Mortgage demand weakened, with 699 total mortgage applications received (including 695 residential), down 13.4% year on year, and an approval rate of 53.9% (down 0.3 percentage points); denials were most commonly attributed to “other” miscellaneous factors, followed by debt service ratios above the 50.0% threshold. Commercial financing applications fell 41.3% to 364, and the approval rate eased by 2.3 percentage points to 88.5%. Banks’ qualitative responses indicated that most respondents reduced lending rates in the second quarter of 2025, with some also lowering down payment requirements and extending repayment terms, and the majority expected near-term credit conditions to remain largely unchanged.
Central Bank of the Bahamas 2025-11-03
Central Bank of the Bahamas survey shows improved lending conditions in the first half of 2025 with applications up 11.5% and mortgages down 13.4%
The Central Bank of the Bahamas' June 2025 Bank Lending Conditions Survey shows improved lending conditions in the first half of 2025, driven by stronger private-sector credit demand. Total loan applications increased by 11.5% to 19,081, with an approval rate of 82.0%. Consumer lending dominated, while mortgage and commercial financing applications declined, with banks reporting reduced lending rates and stable near-term credit conditions.