Results of the Inaugural Bank Lending Conditions Survey

Published: Thursday December 17th, 2015

Understanding trends and developments in domestic credit conditions is integral to the Central Bank of The Bahamas’ (the Central Bank) mandate to promote financial sector soundness and stability. The Central Bank launched its quarterly survey of Bank Lending Conditions Survey (BLCS) during the second quarter of 2015, with the aim of improving the analysis of developments in the loan market, by augmenting the existing quantitative data collected on credit extended by the commercial banks.

The BLCS contains twelve (12) questions on lending to households and businesses (see Annex A), seeking information on the number of loan applications received, approved and denied, and therefore provides a perspective on the demand for credit in New Providence, Grand Bahama and the Family Islands. There is also a forward looking, quantitative component to the BLCS, where respondents are invited to express their views on whether several indicators of lending conditions have improved, worsened or remained the same, and their expectations for the coming quarter. The Central Bank intends to conduct the BLCS at the start of each quarter and examine these developments for the preceding three months.

The seven (7) clearing commercial banks participated in this inaugural BLCS, which provides an analysis of private sector loan applications received and fully processed during the second quarter, 2015. The analysis excludes credit applications which were either received and subsequently cancelled by the applicant or were still being processing by the end of the review period.

For full text reading, please download the attached document.