Credit will continue to slow in 2024. That is the projection made by the Association of Private Banks of Ecuador (Asobanca) for the year that has just begun and after a balance of 2023.
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According to the publication called Evolution of Asobanca Banking, as of December 2023, the credit portfolio reached 42,129 million dollarsthis is an annual increase of 9.2%, or the equivalent of an additional 3.54 billion dollars.
However, Asobanca points out, there is a slowdown in the delivery of credit compared to previous years. For example, as of December 2022 an annual growth of 14.6% had been recordedthat is, there is a deceleration of more than five percentage points during the last year.
The dynamism in the delivery of financing continues to be affected by the existence of ceilings on interest rates, according to Asobanca, which restricts and causes fewer Ecuadorians, mainly entrepreneurs, have access to credit in the formal financial system (financial exclusion).
In addition, the private banking union assures, the current factors of uncertainty in the economic situation of the country, the insecurity that impacts the operations of various businesses and industries and the effects of increases in monetary policy interest rates worldwide affect the delivery of credits.
What did private banks place credit on in 2023? the commercial credit portfolio, intended for SMEs and companies, reached 18,529 million dollars, an annual growth of 5%.
Another key segment for private banks is microcredit, says Asobanca, which amounted to 3,384 million dollars in December 2023, 8.5% more than the same month last year. Entrepreneurships, which are mostly made up of independent workers with inconsistent income, demand permanent financing. For this reason, this type of credit becomes vital.
Meanwhile, the consumer credit portfolio reached 17,352 million dollarswhat represents an annual increase of 15%. Consumer credit is important for Ecuadorian households because it allows immediate access to liquidity, facilitating the purchase of goods and services in the productive sector.
Asobanca assures that Banks will continue to provide credit to Ecuadorian companies and families enin 2024, although less growth is seen in this new year.
Given the arrival of the El Niño Phenomenon, The bank is prepared to accompany the families and companies of the country in the face of the potential impacts it would cause, say the private banks.
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On the deposit side, these grew at the same rate as previous years. Thus, deposits reached 46,232 million dollars As of December 2023, an annual increase of 5.9% (2,589 million dollars more in deposits). This same annual growth was recorded in December 2022.
Of the total bank deposits as of December 2023, 43% (19,884 million dollars) correspond to time deposits, an annual growth of 13%. While savings deposits reached 11,993 million dollars and monetary deposits reached 12,063 million dollars.
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2024-01-08 18:13:12
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