The Effect of Financial Policies Implemented during COVID-19 on Bank Credit in the Central American Region

As a result of the COVID-19 pandemic, governments and central banks worldwide implemented wide range policies to support households businesses, among them series measures availability credit. This paper quantitatively assesses how monetary regulatory policy helped lessen effect economic downturn on bank credit private sector, non-performing loans, focuses small EMEs, which have been subject little analysis in this regard. Specifically, it looks at number countries Central American region. The resulting estimates show that substantially reduced negative impact crisis nonperforming largely responsible for mitigation were rather than monetary.