Pre-Election Credit Landscape: Financial Inclusion in Honduras

The recent publication of the Financial Inclusion Module within the November 2024 Permanent Multi-Purpose Household Survey (EPHPM), conducted by the National Institute of Statistics (INE Honduras) in collaboration with the National Banking and Insurance Commission (CNBS) and the Inter-American Development Bank (IDB), provides an updated snapshot of the Honduran population’s participation in the formal financial system. The survey, which covered 7,250 households equivalent to 26,576 people, provides highly representative data on access, use, and financial education, offering relevant information at a time marked by political debates on credit regulation.

Credit use and determining factors

The document shows that credit use is directly correlated with income levels, increasing as one moves up the income quintiles. This pattern responds to structural factors such as payment capacity, effective demand, knowledge of financial offerings, financial education, and digital literacy.

The survey included questions about loan applications in the last 12 months, considering different sources: financial institutions, informal lenders, pawnshops, and businesses. For those who did not apply for credit, the reason was investigated. The results show that 91.3% of the reasons correspond to lack of demand or perceptions of risk: “I haven’t needed it,” “I don’t meet the requirements,” and “Taking out a loan is too risky.” In contrast, the reason linked to being registered with the Credit Bureau, which has been cited in political debates, accounted for only 0.7%, a figure that indicates its marginal relevance among the barriers to access to credit.

These results diverge from the perspectives of political figures, including the candidate from the governing LIBRE party, who has asserted that the Central Credit Registry restricts credit accessibility and has advocated for its removal. Statistical data indicates that the actual impediments to financial inclusion are more strongly linked to socioeconomic factors, educational attainment, and savings habits, alongside the perceived risk stemming from the prevailing economic conditions.

Financial inclusion and regional comparison

In relation to engagement with the financial sector, the poll indicates that 42% of individuals aged 15 and above possess either a deposit account or an electronic wallet, signifying the extent of banking access. This figure aligns with the World Bank’s Global Findex 2025 data, which recorded 42% for Honduras in 2024, positioning the nation behind nearby countries like Costa Rica (71%) and Panama (64%). Furthermore, a decrease has been observed when compared to pre-pandemic metrics from 2017, underscoring the fundamental obstacles the country encounters regarding financial integration.

The study emphasizes that expanding access to credit and financial services requires evidence-based solutions, such as financial education, strengthening savings, and improving the business climate. Measures that involve the elimination or manipulation of credit information could result in institutional setbacks and greater barriers for those who do not yet have access to the formal system.

Organizational hurdles and the financial landscape

The financial inclusion module pinpoints the **crucial obstacles** hindering credit growth in Honduras. Setting aside political debates surrounding the **Credit Bureau**, the availability and utilization of credit are shaped by **household financial standing**, **financial literacy**, and the perceived risk within an economic climate characterized by instability and widespread informal labor.

The data gathered by INE Honduras, CNBS, and the IDB offers crucial insights for developing public policies designed to enhance financial participation securely and sustainably, thereby preventing the implementation of actions not supported by verifiable information. The examination of the survey results corroborates that financial inclusion is a complex process influenced by multiple factors, with income, education, and economic foresight playing a more significant role than merely credit regulations.