Clipping of news on Brazilian Culture, Law and Citizenship
22/12/2014
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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Average cost of borrowing rose from 44% to 44.2%
BY GABRIELA VALENTE
12.22.2014 10:57 / UPDATED 22/12/2014 12:59
BRASILIA - The interest charged by the banks of Brazilian families broke new record. According to data released Monday by the Central Bank, the average financial cost of loans with free resources (the financial institutions are free to choose as lending) rose from 44% per annum to 44.2% per year in November. It is the largest seen since when the BC began to record the data in 2011.
The rate that gave the biggest jump was the overdraft: from 187.8% a year for no less than 191.6% a year last month. It is the highest in 15 years. On average, banks 103.7% a year in personal credit loans, for example, the CDC. It is the highest rate ever recorded since 2011, when the Central Bank started to store the data on this type of operation.
Even the payroll loans - with lower default risk for banks because the discounts of the parcels is already done in the client's paycheck - was more expensive. Rose from 25.5% per annum to 26.1% per year.
The trend is that these loans become increasingly salty. Is that the Central Bank began a process of high basic interest rate (Selic) in October to contain consumption and try to tame inflation. As this rate is a reference to the cost of money in the financial market, when it increases, loans become more expensive.
October so far, the Selic increased from 11% per annum to 11.75% per year. And the trend is to continue monetary tightening. Still, the Fed kept the credit growth forecast in Brazil 12% this year. And bet on the same expansion pace next year by more than economists financial market provide for a worst case scenario for performance.
As the pace of credit growth in the country is the same in 2015, the Central Bank projected changes in lending. In 2014, for example, public banks should increase their portfolios by 17%, but next year this number should be only 14%.
These are public institutions largely responsible for the increase in credit in Brazil since the great financial crisis of 2009. private national banks should extend loans only 5% this year. This projection has been revised down by the Central Bank. Was 6%. The monetary authority, however, promotes a more upbeat performance in 2015: up 9%.
Foreign banks must expand credit at 7% this year. Before, it was predicted increase portfolio by 9%. In 2015, the projection is also growing 7%.
'BOOM' FINANCING
In all, credit must represent 58% of gross domestic product (GDP, all the services and products produced in Brazil in a year). The expectation of BC is that it will reach 61% of GDP next year.
- The comparison base growth more restrained this year favors the growth in statistical terms next year - said the head of BC's economic department, Tulio Maciel.
In the assessment of the Central Bank, after a funding boom in Brazil, it grows more sustainably. To Maciel, the credit market highlight is the maintenance of low levels of default over 2014.
- A relevant aspect that I was the behavior of default. A high was expected and this did not materialize. This reflects a number of factors, including the impact of financial education in recent years - stressed Maciel. - We enter 2014 looking to defaults cautiously and she continued at low levels.
When considering free and directed credit, bad debt of individuals is 1.7%. Have the corporations was 0.5% in November.
Source: The Day Online
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This article was translated by an automatic translation system, and was therefore not reviewed by people.