Bolivia Economic Indicators
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Bolivia Bank credit to the private sector

(percent, source: The World Bank)

Bolivia Bank credit to the private sector as percent of GDP: For that indicator, The World Bank provides data for Bolivia from 1961 to 2011. The average value for Bolivia during that period was 23.31 percent with a minumum of 1.86 percent in 1961 and a maximum of 63.04 percent in 1999.

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Bank credit in Bolivia and other countries is defined as the credit extended by the banking institutions, including commercial banks and the monetary authorities, i.e. the central bank. The information below includes credit to the private sector only: both firms and households. It does not include lending to the government.

Credit is essential for the economy to function well. It funds new investments and allows people to purchase houses, cars, and other items. Of course, excessive lending and borrowing usually end up in financial crises but, in principle, credit availability is good for economic development.

If the banking credit to the private sector is about 70 percent of GDP and more, then the country has a relatively well developed financial system. The amount of credit can even exceed 200 percent of GDP in some very advanced economies. In some poor countries, the credit could be less than 15 percent of GDP. In these countries, firms and households essentially do not have access to credit for investment and various purchases.
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Bolivia Bank credit to the private sector: Compare to other countries

World Bank definition: Private credit by deposit money banks and other financial institutions to GDP, calculated using the following deflation method: {(0.5)*[Ft/P_et + Ft-1/P_et-1]}/[GDPt/P_at] where F is credit to the private sector, P_e is end-of period CPI, and P_a is average annual CPI. Raw data are from the electronic version of the IMF’s International Financial Statistics. Private credit by deposit money banks (IFS line 22d); GDP in local currency (IFS line 99B..ZF or, if not available, line 99B.CZF); end-of period CPI (IFS line 64M..ZF or, if not available, 64Q..ZF); and annual CPI (IFS line 64..ZF). (International Monetary Fund, International Financial Statistics, and World Bank GDP estimates)