Credit Conditions ease during January to March quarter of 2018

    JN Fund Managers
    JN Fund Managers

    In the latest Quarterly Conditions Survey Report published by the Bank of Jamaica (BOJ), during the quarter January to March 2018 overall credit conditions marginally eased, which was evident in both secured and unsecured lending. Credit availability moderated to 102.2 from 104.2 reflecting a slowdown in the growth of credit supply primarily driven by changes in economic sector specific risks, economic outlook, market share objectives and competition. Meanwhile, credit demand for the March quarter declined, primarily due to a reduction in the demand of local currency business loans. The survey also indicated that dur-ing the April – June quarter, lenders anticipate an uptick in the amount of credit available. They also indicated that they plan to decrease the interest rate on new local currency loans and increase the interest rates on new foreign currency loans. Despite the slowdown in credit availability, we believe that the low interest rate environment is likely to facilitate sustained credit demand.

    JN Fund Managers

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