By the end of March this year, Barbadians had some $10.7 billion in savings, while there was a rebound in lending during 2021, according to the latest Financial Stability Report.It noted that the growth in domestic currency deposits into the first quarter of this year was a spillover of the growth experienced in 2021.“Domestic currency deposits grew by 4 per cent, a slower pace than the 6 per cent growth recorded in 2020. The continued deposit growth partly reflected the monetary effects of the fiscal relaxation and was mirrored in the $170 million expansion of holdings of individuals. This growth persisted into the first quarter of 2022, with deposits reaching $10.7 billion,” it read.The 94-page report also showed that after a year of decline due to the effects of the COVID-19 pandemic, the demand for borrowing increased in 2021 as confidence started to return to the economy.The total new lending for 2021 rose by 3.7 per cent, representing a recovery from the decline registered in 2020.“With regained confidence in the economy, households and businesses, particularly the tourism and distribution sectors, increased their demand for bank credit,” the report said, adding that “within the business sector, new credit demanded in 2021 was primarily put towards working capital and refinancing”.
