Tonga: Bank credit to the private sector

* indicates monthly or quarterly data series
 Tonga

Bank credit to the private sector as percent of GDP

 Latest value 39.63
 Year 2022
 Measure percent
 Data availability 1975 - 2022
 Average 33.14
 Min - Max 2.69 - 55.08
 Source The World Bank
For that indicator, we provide data for Tonga from 1975 to 2022. The average value for Tonga during that period was 33.14 percent with a minimum of 2.69 percent in 1975 and a maximum of 55.08 percent in 2007. The latest value from 2022 is 39.63 percent. For comparison, the world average in 2022 based on 148 countries is 54.21 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
Tonga - Bank credit to the private sector - Recent values chart

Historical chart
Tonga - Bank credit to the private sector - historical chart - 1975-2022




Bank credit in Tonga 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.

Related articles

Banking crises

Types of financial institutions



 Related indicators Latest value Reference Measure
 ATMs per 100,000 adults 40.51 2018 ATMs per 100,000 adults
 Bank accounts per 1000 adults 761.22 2018 bank accounts
 Bank branches per 100,000 people 33.01 2018 bank branches
 Firms using credit to finance investment 33.90 2009 percent
 Small firms with bank credit 52.90 2009 percent
 Domestic credit to the private sector 39.20 2020 percent
 Bank credit to the private sector 39.63 2022 percent
 Liquid liabilities, percent of GDP 62.65 2020 percent
 Bank assets to GDP 46.99 2020 percent
 Financial system deposits, percent of GDP 54.27 2020 percent
 Bank credit to government 8.18 2020 percent
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