The annual growth rate of credit to the private sector by the commercial banks accelerated to 5% at the end of December 2022.
The credit growth rate accelerated from 1% in November 2022, reports Maldives Monetary Authority (MMA).
The credit to all major sectors except for the construction sector continued to expand in December 2022. Personal loans registered the highest growth during the review month.
Moreover, credit extended to the tourism sector, which accounts for the highest share of bank credit, registered an annual increase of 3% in December.
On the other hand, the annual decline in credit to the tourism sector was driven by a marked increase in credit lent in the form of working capital. This came despite the decline in credit lent for new resort development and credit lent for the renovation of resorts.