2023-09-20 22:45:03
The main financial system variables moved with relative stability in the month prior to the PASO: both deposits and loans to the private sector maintained positive variations although in the case of credit, although it advanced only 0.4% monthly, it maintained the a fall that was evident throughout the year in year-on-year terms with a contraction of 8.5% measured in real terms.
You may be interested in: Risk rating agencies concerned with Tigo’s situation due to the debts it accumulates and the possibilities of non-payment
The data comes from the Bank Report published today by the Central Bank corresponding to July, which highlighted that “the real balance of financing in national currency to the private sector increased 0.4% with respect to the previous month”, an increase that It was explained by the slight expansion of the commercial and consumer segment. In contrast, it was noted, the balance of financing with real guarantee was reduced. The improvement, the official report specified, was mainly reflected in public banking entities and private banking entities of foreign origin.
“In year-on-year terms, the balance of credit to the private sector in pesos decreased 8.5% in real terms,” noted the Central Bank and added that “in particular, the estimated balance of the Financing Line for Productive Investment of MSMEs (LFIP) totaled almost $1.8 trillion in July, representing 13% of the total private sector credit balance, with an increase of 0.5 percentage points in relation to one year. The subsidized line already represents, in the context of a credit retraction, 22.6% of the total balance of loans to companies.
You may be interested in: Real estate and gold: the investment assets preferred by Spaniards for their “security”
Regarding deposits, the real balance in pesos of the private sector increased 1.2% in the period, which is equivalent to 1.5% in interannual terms, driven mainly by time deposits. “With the objective of anchoring exchange expectations and tending towards positive real returns on investments in pesos, in mid-August the BCRA raised 21 percentage points. the nominal interest rate of the 28-day LELIQ and the minimum interest rate for term deposits in pesos of up to $30 million from individuals, taking them to 118% TNA (111% for the rest of the fixed-term deposits) “, recalled the Central Bank regarding the last increase in the monetary policy rate that accompanied the post-STEP devaluation.
Regarding deposits in dollars, the BCRA indicated that in July foreign currency deposits from the private sector increased 0.5%. “As a result, the real balance of total deposits of companies and families (considering national and foreign currency) increased 1.2% compared to the previous month,” he pointed out.
The Central Bank’s publication also highlighted the evolution of other key variables of the financial system, such as means of payment, the level of arrears and liquidity. Namely:
You may be interested in: New contender in the deposit war: Kutxabank increases the profitability of its fixed-term bonding up to 3%. In July, the number of operations and the real amount processed through the main means of electronic payment continued to grow. The amount of immediate transfers accumulated an annual increase of 109.8%. (25% in amounts in real terms), 276% annually. for payments with transfers (200% real) and 30.5% annually for ECHEQs (18.2% real). On the other hand, the rejection of checks due to lack of funds over the total cleared remained without significant changes in the last month, being below the average for 2023. The credit irregularity ratio to the private sector was 3.1 %, at levels similar to last month and a year ago. Disaggregated by segment, both financing to families and companies did not register significant variations in the delinquency rate (totaling 2.9% and 3.3%, respectively). The forecasts of the group of financial entities represented 3.8% of the total credit balance to the private sector and 124% of the portfolio in an irregular situation in the period. Finally, at the beginning of the second half of the year, the liquidity of the financial system remained at relatively high levels. In July, liquid assets in the broad sense totaled 81.3% of total deposits (80.1% for items in pesos and 88% for the segment in foreign currency), 0.2 percentage points below last month, although 12.3 points above the same period in 2022 and 26.2 points from the average of the last 10 years.
#Loans #continued #fall #deposits #grew #slightly #PASO