Analyzing the Credit Market in Paraguay: Insights and Trends

E. Ferreira da Costa Perán, Lic. UNA Administration, TFO Academy

Last week we were observing the Deposit Market between the banks and finance companies regulated by the Central Bank of Paraguay, an important point to remember is that the total deposits in these financial entities amount to USD 19,915 million in March 2023 using a referential exchange rate of G. 7,000, this data is very interesting to us, since the total loan portfolio in banks and finance companies in March 2023 amounts to a total of USD 18,764 million, again using the same exchange rate -G. 7,000-. The fact that the amounts are almost equal helps us to have a reference of how both markets are. In this way we enter the topic of today’s article, the credit market in banks and finance companies regulated by the Central Bank of Paraguay.

The behavior of the credit portfolio in the last 13 months, between March 2022 and March 2023. In this period of time there was a total increase of 9.36% in the loan portfolio made by these financial entities to individuals and legal. On the other hand, in terms of participation among banks, Continental has 15.50%, followed by Itaú with 13.08% and in third place GNB with 11.71% participation among the total loans granted. of banking entities. On the other hand, the distribution among financial companies, those with the highest monetary amount of loans are Finexpar with 39.12%, Financiera Paraguayo Japonesa with 18.46% and ueno with 16.08% in relation to the credit market. of the financial It is important to highlight that the percentages of participation mention the percentage of the total credits that a bank or finance company has in its favor in relation to the totality that it has in the system.

In addition, we take the opportunity to remember about the Deposit Guarantee Fund (FGD), as its name indicates, it guarantees the saver’s money up to 75 minimum wages, currently being a sum of G. 191,273,025 (guaraníes one hundred and ninety-one million two hundred and seventy-three thousand and twenty-five), according to the current minimum wage in force, but in the event that a person has a loan with the financial institution, compensation is made between savings and credits to calculate the guaranteed amount; The FGD was created with Law No. 2334/03 in order to protect deposits of savers and is managed and accounted for separately by BCP, therefore it is not part of BCP’s assets. It is worth mentioning that cooperatives and securities issues on the Stock Market are not subject to these guarantees.