2023-08-08 23:26:00
Quito, Aug 8 (EFE).- The credit portfolio of Ecuador’s private banks reached 40,550 million dollars in July, 11.2% more than the same month of 2022, as announced on Tuesday in a statement by the Association of Banks of Ecuador (Asobanca), which warned of a slowdown in the delivery of loans.
The annual increase of 11.2% contrasts with the increase of 17.7% registered in July of last year, which now represents a fall of 6.5 percentage points, the banking union specified.
According to Asobanca, this slowdown is due to “factors such as the uncertainty caused by the electoral situation, insecurity, the impact of the El Niño phenomenon on the economy and local interest rate regulations, which are incompatible with the situation of international interest rates.
Regarding this last point, the association described the international context as “challenging”, due to the increase in monetary policy interest rates that developed economies, as well as emerging countries have carried out -since March 2022- to face to inflation.
This has raised the cost of external financing for companies, private banks and cooperatives and, as a consequence, has restricted the liquidity that could come from abroad, “also affected by the existence of ceilings on interest rates at the local level that prevent them from being adjusted to current reality, which reduces formal financing”.
Likewise, he pointed out that formal loans “drive the growth of productive activities in Ecuador”, as reflected in the fact that 59% of the credit portfolio, equivalent to 23,964 million dollars, is destined for production loans (productive, housing and microcredit).
At the same time, the remaining 41%, which covers 16,586 million dollars, corresponds to consumer loans.
The Asobanca also highlighted that deposits have grown to reach 43,810 million dollars, 6.9% more than in July of last year.
Of the total bank deposits, 18,912 million dollars correspond to term deposits, a growth of 18.9% compared to July 2022.
Meanwhile, savings deposits reached 11,161 million dollars and monetary deposits 11,504 million dollars.
The report from the Superintendency of Banks reveals that liquidity was 24.02% in July 2023 and coverage was 208%, which for the bankers’ union means that “the private banking system is solid, liquid and solvent”. EFE
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