An Analysis of Private Sector Credit in Belize

18 Jan 2018

This paper seeks to identify the long run determinants and short run dynamics influencing Belize credit growth performance during the period 1997 to 2016. Restrictions were applied to a vector error correction model to identify credit demand and credit supply behaviour. Key findings confirm the existence of a long run relationship between credit growth, domestic banks’ equity and non-performing loans, indicative of implications for regulatory capital regimes and credit risk mitigation.

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