Eritrea: Bank credit to the private sector

* indicates monthly or quarterly data series

Bank credit to the private sector as percent of GDP

 Latest value 19.00
 Year 2014
 Measure percent
 Data availability 1995 - 2014
 Average 24.47
 Min - Max 15.55 - 45.10
 Source The World Bank
For that indicator, we provide data for Eritrea from 1995 to 2014. The average value for Eritrea during that period was 24.47 percent with a minimum of 15.55 percent in 2013 and a maximum of 45.1 percent in 1998. The latest value from 2014 is 19 percent. For comparison, the world average in 2014 based on 176 countries is 53.44 percent. See the global rankings for that indicator or use the country comparator to compare trends over time.
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* indicates monthly or quarterly data series

Recent values chart
Eritrea - Bank credit to the private sector - Recent values chart

Historical chart
Eritrea - Bank credit to the private sector - historical chart - 1995-2014

Bank credit in Eritrea and other countries is defined as the credit extended by the banking institutions 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.
Definition: Domestic credit to private sector by banks refers to financial resources provided to the private sector by other depository corporations (deposit taking corporations except central banks), such as through loans, purchases of nonequity securities, and trade credits and other accounts receivable, that establish a claim for repayment. For some countries these claims include credit to public enterprises.

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 Related indicators Latest value Reference Measure
 Firms using credit to finance investment 11.90 2009 percent
 Small firms with bank credit 6.60 2009 percent
 Domestic credit to the private sector 53.24 2014 percent
 Bank credit to the private sector 19.00 2014 percent
 Liquid liabilities, percent of GDP 172.68 2014 percent
 Bank assets to GDP 75.24 2014 percent
 Bank credit to government 56.69 2014 percent
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