The Central Bank of the Bahamas released its December 2024 Quarterly Bank Lending Conditions Survey, reporting improved lending conditions and stronger private-sector credit demand in July to December 2024 compared with the same period in 2023, led by consumer borrowing. Commercial banks processed 20,145 applications (up 22.7%) and approved 16,280 (up 20.0%), while the overall approval rate eased to 80.8%; loan denials rose 17.2% to 1,863, most often attributed to miscellaneous factors, high debt service ratio (DSR) and prior delinquency. Consumer loans accounted for 94.0% of total applications (18,936, up 25.4%), with an average approval rate of 81.6% (down 2.3 percentage points); denials were frequently linked to “other” factors (including low credit scores and purposes outside bank policy), high DSR and prior delinquencies. Residential mortgage applications fell 7.6% to 725, but the approval rate increased to 54.6%; denials most commonly cited miscellaneous issues and DSRs above the 50.0% threshold. Commercial credit applications declined 9.0% to 484 and the approval rate edged down to 88.6%, with denials again concentrated in miscellaneous factors and debt service above threshold. Most of the seven banks surveyed reported cutting lending rates in the second half of 2024, some reduced down payments or extended repayment terms, and lenders generally expected credit conditions to remain unchanged in the near term.
Central Bank of the Bahamas 2025-04-28
Central Bank of the Bahamas publishes December 2024 Bank Lending Conditions Survey showing loan applications up 22.7% and approvals at 80.8%
The Central Bank of the Bahamas' December 2024 Quarterly Bank Lending Conditions Survey shows improved lending conditions and increased private-sector credit demand, driven by consumer borrowing. Commercial banks processed 20,145 applications (up 22.7%) with an approval rate of 80.8%, while loan denials rose 17.2% due to high debt service ratios and prior delinquencies. Most surveyed banks reduced lending rates and adjusted terms, anticipating stable credit conditions in the near term.