Private Sector Loan Delinquency Drops $27 Million – Eye Witness News

NASSAU, Bahamas — Commercial banks in the Bahamas cut total private sector delinquencies by more than $27 million last month, according to recent data released by the central bank.

In its monthly economic and financial developments report for July, the regulator noted further improvement in commercial bank credit quality indicators during July, reflecting a decline in short-term and long-term delinquencies.

“Specifically, total private sector delinquency decreased by $27.2 million (3.9%) to $661.9 million, with the related ratio down 48 basis points to 12.2% of outstanding claims. ,” the central bank said.

A breakdown of the average age of loan delinquencies showed that non-performing loans (NPLs) declined by $23.9 million, or 4.9%. In addition, short-term delinquencies (31-90 days) decreased by $3.3 million (1.6%).

“Total bank loan loss reserves fell by $18.3 million (3.9%) in July to $447.9 million,” the report said.

“As a result, the ratio of gross provisions to delinquencies remained unchanged at 67.7%. However, the ratio of gross provisions to NPLs increased by 97 basis points to 96.5%. Accounts payable coverage rose 80 basis points to 76.5%.During the review month, banks wrote off an estimated $19.4 million in delinquent loans and recovered about $4.5 million,” the regulator said. did.

The central bank also noted that growth in total Bahamian dollar deposits slowed to $64.3 million from $71.2 million in the corresponding period in 2021.

In addition, the demand balance increased by $26.4 million, over last year’s cumulative total of $24.4 million. Somewhat offsetting, his term deposits fell $11.4 million, reversing his $13.8 million increase a year earlier. Meanwhile, the shrinkage of resident foreign currency deposits has slowed from $41.3 million to $7.3 million in 2021,” the central bank notes.