IMF Says Banking Sector Stable, but Credit Growth Is Slowing

The International Monetary Fund says Antigua and Barbuda’s financial system remains stable and liquid, even as credit growth has slowed across banks and credit unions.

In a concluding statement following its Article IV consultation mission, IMF staff said bank lending to the private sector decelerated to just under 5 percent in the year to November 2025, down from about 12½ percent a year earlier. Lending growth among credit unions also moderated over the same period.

The Fund noted that banks’ nonperforming loan (NPL) ratios have remained below the 5 percent prudential threshold since late 2024, reflecting improved asset quality and prudent risk management. However, it said credit union NPLs remain somewhat higher, underscoring the need for continued supervisory attention.

Despite the slowdown in credit expansion, the IMF said liquidity across the financial system remains strong, with banks holding sizable assets, including placements abroad. The Fund added that limited access to finance continues to be cited by businesses as a constraint, even as lenders point to a shortage of bankable projects.

IMF staff welcomed recent steps to strengthen financial intermediation, including the launch of the regional credit bureau for banks in Antigua and Barbuda and its planned expansion to credit unions, saying this should help reduce information gaps between lenders and borrowers and support broader access to credit.

The IMF said maintaining financial stability while improving access to finance will be key to supporting inclusive growth, and encouraged continued efforts to strengthen supervision, provisioning and capital buffers, particularly among credit unions.

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