Private Credit by Deposit Money Banks to GDP for Canada

DDDI01CAA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

124.10

Year-over-Year Change

57.82%

Date Range

1/1/1960 - 1/1/2008

Summary

This economic trend measures the ratio of private credit provided by deposit money banks to the gross domestic product (GDP) of Canada. It is a key indicator of financial development and credit availability in the Canadian economy.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The private credit to GDP ratio reflects the level of financial intermediation and banking sector development. It provides insights into the degree to which the banking system is able to channel funds from savers to borrowers to support economic activity.

Methodology

The data is collected and calculated by the World Bank using information on domestic credit to the private sector and GDP figures.

Historical Context

This indicator is widely used by economists, policymakers, and financial analysts to assess the depth and stability of Canada's financial system.

Key Facts

  • Canada's private credit to GDP ratio was 90.4% in 2021.
  • The ratio has remained relatively stable over the past decade.
  • High private credit to GDP is generally associated with more developed financial markets.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of private credit provided by deposit money banks to the GDP of Canada. It is an indicator of financial intermediation and banking sector development.

Q: Why is this trend relevant for users or analysts?

A: The private credit to GDP ratio provides insights into the depth and stability of Canada's financial system, which is crucial for supporting economic growth and development.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank using information on domestic credit to the private sector and GDP figures.

Q: How is this trend used in economic policy?

A: Economists, policymakers, and financial analysts use this indicator to assess the overall health and development of Canada's financial system, which informs policy decisions.

Q: Are there update delays or limitations?

A: The data is updated annually by the World Bank, and there may be some delays in the most recent figures being available.

Related Trends

Citation

U.S. Federal Reserve, Private Credit by Deposit Money Banks to GDP for Canada (DDDI01CAA156NWDB), retrieved from FRED.