The State Bank of Puntland (SBP) plays a critical role in managing credit conditions within Puntland, shaping the accessibility and cost of credit to influence economic activity. Through the implementation of strategic policies, SBP impacts the levels of lending and borrowing, fostering a balanced and stable credit environment. This includes setting clear lending guidelines, adjusting reserve requirements, and enacting macroprudential policies to safeguard financial stability. By carefully monitoring and regulating credit conditions, SBP ensures that credit flows responsibly, supporting sustainable economic growth while mitigating financial risks.