Clipping of news on Brazilian Culture, Law and Citizenship
02/12/2013
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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The need to sell meant that retailers return to take the risk of extending credit
The shops returned to finance consumer purchases through their own cards , booklets and slips Getty Images
The shops returned to finance consumer purchases through their own cards , booklets and slips, after the end of many partnerships with banks in recent years .
With the rise of the lower income classes , the registration of customers purchasing term in stores network became the most coveted bride by banks, which harassed to finance retail credit portfolios .
But with the rise of consumer defaults and flattening of spreads ( the difference between the cost of borrowing and loan ) , this vein was unattractive for banks . They ran out of room to afford this credit.
According to the Central Bank, delinquencies in this segment reached in May of last year's peak of 9.4 % of receivables . What you see now is a move in the opposite direction in recent years.
Pressured by the need to sell, many retailers turned to take the risk of extending credit to customers who had been outsourced to banks .
Signs of recovery in the dual role of retail - lend money to sell - already appear in the credit data of CB ( Central Bank) . Since the third quarter of 2012 , credit concessions for companies with free resources - which involves discounting of trade bills , checks and credit card - are increasing compared to the same period last year . This means that the retailer is seeking funds in the market to fund the installment sale .
In the third quarter of this year , the addition of these lines reached 16.62 % compared to the same period 2012 , mainly anticipated for credit cards ( 50 % ) , pointing survey based on data from the BC chief economist SPC Brazil , Luiza Rodrigues .
slower pace
In contrast, the high pace of concessions financing for consumers to buy "other goods " , which includes appliances and electronics , for example , other cars , and is given the credit of banks in stores , has lost steam .
In the third quarter of 2012 , loans approved by banks for the purchase of these items grew 11.22% compared to the same period in 2011 . In the third quarter of this year this rate slowed to 5.82 % in annual terms. The variation is roughly equal to inflation. This means that there was no real advance on the credit line .
" The strongest evidence that banks are preferring to lend to businesses and not take the risk of the consumer is that the rebate installment payment has risen sharply in recent months," says Luiza .
The president of CNDL ( National Confederation of Shopkeepers ) , Pellizzaro Roque Jr. , explains that the marriage did not work because the default rate increased . " The banks realized that they also needed the fat retail margin for the account closed . Only the interest income was not enough. "
With increasing default , stores lost sales. Is that in the case of partnerships that have been maintained , banks tightened criteria for approving new credits so that made the business unviable .
In retailer C & C Construction materials , for example , in recent months there has been an advance in the common credit card sales , account director - general of the network , Osvaldo Leiva .
The increase in the share of the card was to pay for sales financed by banks . For three years , the network had partnership with Itaú , broken in mid-2012 .
In evaluating a retailer who prefers not to be identified , the big loser of the output of banks credit to shop in the stores is the consumer . Is the cost to the retailer itself seek credit in the market to pass on to customers is greater than the banks .
That means higher interest in the tip . Furthermore, without the bank 's ability to stretch is less term store .
Source: R7
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This article was translated by an automatic translation system, and was therefore not reviewed by people.