The Santa Fe Stock Exchange (BCSF) submitted a report on the evolution of loans and deposits of the Argentine and Santa Fe banking financial system. The work addresses the evolution during the last decade of this problem, from a disaggregated vision of the different sectors of economic activity, both for the national and provincial spheres.
The statistics of the last two decades indicate that the most recent volumes of the Argentine banking financial system are positioned at significantly low levels. According to the data of bank loans expressed in dollars, the maximum volumes registered in the period under analysis (2012-2022) were reached in 2017 with a total of US$330,908 M in loans.
In 2022, the total loans in the system showed a volume of US$183,345 M, reflecting a contraction of 44.6% compared to the peak in 2017. Furthermore, it is observed that the loans in the last quarter of 2022 were located 30% below the quarterly average of the last 10 years -which reached US$64,500 M-. This shows that the volume of loans granted to the productive sector by the banking system in Argentina is in decline. In addition, a stagnation is observed in the last 4 years around the lowest values of the last decade.
This is how loans and deposits evolved in the banking system
Indeed, in the course of 2022, 33.8% of private loans were absorbed by individuals who work in a dependency relationship, capturing a total of US$62,000 M per year. In addition, the loans granted to the different branches of activity have a participation of 62.3% in the total. In terms of volume, these represent US$121,500 M. Finally, the remaining participation – 4.0% – was turned over to loans from unidentified Activities, for some US$7,200 M.
Analysis by branch of activity
When observing the different branches of activity, the main applicant for loans to the Manufacturing Industry (u$s29,372 M) stands out. Within it, the companies dedicated to the Manufacture of food products and beverages (10.1%) stand out, following in importance the headings of Manufacture of chemical substances and products (3.4%) and Manufacture of machinery and equipment ( 2.3%).
Activities related to Services rank as the second sector in participation, with 23.8% of the total. Specifically, companies engaged in real estate, business and rental services as well as financial intermediation and other financial services become relevant, both with 4.5% of the total loans granted.
Primary Production, for its part, absorbed close to US$27,850 M in 2022 (22.9%). Among these, activities related to agriculture (13.0%) and livestock (5.5%), as well as oil and gas extraction (3.2%), are relevant. In fourth and fifth place, respectively, are activities related to Commerce (17.0%) -which demanded loans for US$20,623 M- and Construction, which represented 4.2% of the total amounts granted. .
The Santa Fe case
When replicating the analysis of Argentine banking flows at the provincial level, it was found that the total loans granted by banking entities behaved in a similar way at the national level in almost the entire period. However, the participation of the sectors changes in relation to the structure of Argentina, where the province represents 7.6% of the total loans nationwide, but with sectors in which this ratio exceeds 15.0%. Among the latter, we can mention the activities related to crops and agricultural services, the manufacturing industry in general and the food industry in particular.
This is how loans and deposits evolved in the banking system
Regarding the sectors of activity, in the province of Santa Fe, the participation of the branches of activity is divided into three levels. The manufacturing industry leads the demand for loans, absorbing close to 30.0% (USD 3,050 M), driven by the Manufacture of food and beverage products.
In second place are Primary Activities (USD 2,793 million), led by Crops and agricultural services. In turn, it is observed that in the 10 years of analysis, the primary sector is losing importance, making industry the main applicant for funds. At another level, Commerce and Services are located, each representing close to 17.0%, with US$1,500 M. Finally, Construction and activities related to Electricity, gas and water are positioned in the last two places.
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