Failure of the individual rises from 2007
This article was translated by an automatic translation system, and was therefore not reviewed by people.
The president of Professionals, a credit analysis, Francisco Valim, said today that the default rate on credit to individuals is rising in Brazil since 2007.
He is currently at 8.3% of total credit the percentage of late claims for more than 90 days, according to data from the Central Bank in March. Valim, who attended a public hearing of the Special Committee of the Board established to monitor the effects of international financial crisis, said, however, that an increase in arrears in Brazil was little affected by the financial crisis.
"There was no significant negative effect of the crisis in the credit market to individuals," said Valim. However, he stressed that the crisis created since the end of the year, some people decline to take new loans. "And that due to uncertainty about the employability," he said.
For the president of Professionals, the default rate on credit to individuals in Brazil is high and has structural causes. "One of the main problems is the high concentration of credit, because it is always the same proportion of people taking credit," he said. This, he said, takes a few moments to "indebtedness" of those people who end up delaying the payments.
"There is still, in Brazil, the phenomenon of adverse selection," he said, explaining that the name refers to the fact that the high default rate have a stake of nearly 40% of the formation of the spreads (the difference between the interest paid by the bank the capture of resources and the interest charged to customers). "This means that all who take credit default pay for some. It is the socialization of default," he said.
Register positive
Valim defended the approval of the creation of positive entries in Brazil as an important strategy to reduce default and increase access to credit. He said today the members of the Special Committee of the Board established to monitor the effects of international financial crisis that one of the factors that contribute to the high cost and poor access to credit is the lack of information on borrowers. "When the credit grantors do not have much information about the borrowers, there is a high hidden costs of this credit," he said.
He told MEPs that the current system, which only share negative information about credit, end up excluding many applications for credit. He said out of 100 thousand applications for loans made today, 11.4 thousand are lost due to the exclusive use of negative data. According to him, the credit assessments are made based on basic information such as name, address, phone number, outstanding debt, current income or estimated, profession, occupation and spouse.
With the positive list, the information would be more qualified for the credit grantors, such as history of previous financial commitments of customers and the payment profile of customers had recently. "Knowing the customer takes the credit grantors to reduce the uncertainties that influence the rates charged," he said.
Now clears the House of Representatives a bill authorizing the creation of such a positive record in Brazil. The project is ready to vote in plenary, but still no agreement between the party leaders to allow the vote on the proposal.
Source: State Agency
This article was translated by an automatic translation system, and was therefore not reviewed by people.
Important:
The JurisWay site does not interfere in the work provided by doctrine, why only reflect the opinions, ideas and concepts of their authors.
