Money & Banking
Private credit to GDP
Private credit to GDP measures total bank lending to households and businesses as a share of a country's economic output — a proxy for how deeply financial markets are integrated into the real economy. A ratio above roughly 100% signals a highly leveraged private sector, which can amplify a downturn if credit conditions tighten sharply.
Why it matters
Rapid growth in this ratio is one of the more reliable early-warning signs ahead of a financial crisis.
Also known as: credit-to-GDP ratio, private sector credit