But in comparison to other countries, Bahamian bank lending could stand to be larger, and still be prudent. That is, particularly, if we incentivise more lending of the right mix, to fund more counter-cyclical business and investment growth. In the process, the economy could also be sustainably larger and more prosperous.
Introduction [Slide 3] Since the financial crisis there have been significant efforts in fiscal, monetary and structural policies to resurrect demand across the globe. Monetary policy has had an important role. High debt levels in many countries are constraining fiscal policies. But even in those countries composition of expenditure could be more growth friendly.