BOJ reports increase in credit to businesses, households

THE Bank of Jamaica (BOJ) is reporting a significant increase in credit extended by deposit-taking institutions to businesses and households for the 12-month period ending December 2019.

BOJ Governor Richard Byles said credit to businesses grew by 20.3 per cent, while the provision to households increased by 16.5 per cent.

“This growth was notably faster than the expansions of 15.4 per cent and 12 per cent in credit to businesses and households, respectively, which were recorded in 2018,” he pointed out.

He said, further, that the number of firms securing financing from the issue of corporate bonds and equity is “encouraging”.

The governor was addressing the quarterly media briefing at the BOJ’s downtown Kingston headquarters, yesterday.

Byles said the buoyant growth in credit represents “stronger signs” that the Central Bank’s accommodative monetary policy stance “has been bearing fruit”.

Accommodative monetary policy is where a central bank attempts to expand the overall money supply to boost the economy.

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