Tonga - Domestic credit to private sector by banks (% of GDP)

Domestic credit to private sector by banks (% of GDP) in Tonga was 38.82 as of 2020. Its highest value over the past 45 years was 55.08 in 2007, while its lowest value was 2.69 in 1975.

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.

Source: International Monetary Fund, International Financial Statistics and data files, and World Bank and OECD GDP estimates.

See also:

Year Value
1975 2.69
1976 8.50
1977 10.42
1978 10.45
1979 13.73
1980 15.62
1981 18.40
1982 22.20
1983 20.71
1984 21.48
1985 25.44
1986 24.72
1987 29.43
1988 36.24
1989 39.08
1990 37.69
1991 32.09
1992 30.12
1993 31.69
1994 30.32
1995 35.51
1996 35.59
1997 40.41
1998 42.27
1999 37.86
2000 40.51
2001 41.88
2002 44.03
2003 44.62
2004 40.58
2005 52.83
2006 48.23
2007 55.08
2008 52.27
2009 48.01
2010 39.93
2011 32.97
2012 30.60
2013 30.67
2014 31.46
2015 33.90
2016 37.23
2017 37.84
2018 39.44
2019 37.39
2020 38.82

Development Relevance: Private sector development and investment - tapping private sector initiative and investment for socially useful purposes - are critical for poverty reduction. In parallel with public sector efforts, private investment, especially in competitive markets, has tremendous potential to contribute to growth. Private markets are the engine of productivity growth, creating productive jobs and higher incomes. And with government playing a complementary role of regulation, funding, and service provision, private initiative and investment can help provide the basic services and conditions that empower poor people - by improving health, education, and infrastructure.

Limitations and Exceptions: Credit to the private sector may sometimes include credit to state-owned or partially state-owned enterprises.

Statistical Concept and Methodology: Credit is an important link in money transmission; it finances production, consumption, and capital formation, which in turn affect economic activity. The data on domestic credit provided to the private sector by banks are taken from the other depository corporations survey (line 22D) of the International Monetary Fund's (IMF) International Financial Statistics. The other depository corporations include all deposit taking corporations (deposit money banks) except monetary authorities (the central bank).

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Financial Sector Indicators

Sub-Topic: Assets