Family indebtedness reaches 53.1% in August, says Central Financial institution

The volume of credit operations reached R$5.1 trillion in August, which represents an expansion of 1.6% in the month

The indebtedness of families with the National Financial System (SFN) reached 53.1% in July, which represented an increase of 0.3% in the month and 5.1% in 12 months. Income commitment stood at 28.6%, with respective variations of 0.5% and 3.8%. The data are part of the monetary and credit statistics released this Wednesday (28) by the Central Bank of Brazil.

According to the BC, the volume of credit operations reached R$ 5.1 trillion in August, which represents an expansion of 1.6% in the month. There were increases of 0.9% in the corporate portfolio (balance of R$2.1 trillion) and of 2.1% in the individual portfolio (R$3.0 trillion).

In the comparison with the same period of the previous year, the growth of the total credit stock changed from 16.9%, in July, to 16.8%, in August. This movement resulted from the deceleration from 20.9% to 20.7% in the interannual growth of credit to individuals and the stability of 11.5% in the expansion of operations carried out with companies, considering the same periods of comparison.

In an attempt to control inflation in the country, the Central Bank put into practice an aggressive cycle of hikes in the basic interest rate, which was only interrupted this month, with the Selic rate at 13.75% per year.

Breaking down by type of borrower, the credit balance to individuals rose 2.1% last month and 20.7% in 12 months. For corporations, growth was 0.9% in June and 11.5% in 12 months.

Interest and spread

In the period, there was an increase to 40.6% per year in the interest charged by financial institutions on free credit, in which rates are freely agreed between banks and borrowers, an increase of 0.2 percentage point in the month – the growth was 10.9 points in 12 months.

In earmarked resources, which meet the parameters established by the government, there was a decrease of 1.7 points in the month, to 10.2%, with an increase of 2.2 points in 12 months.

The bank spread, the difference between the cost of funding institutions and the amount charged on loans to the public, rose to 28.3 percentage points in free credit, compared to 27.5 points in the previous month and 21.5 points in August 2021.

Last month, delinquency in the segment of free resources stood at 3.9%, compared to 3.8% in July.

The indebtedness of families with the National Financial System (SFN) reached 53.1% in July, which represented an increase of 0.3% in the month and 5.1% in 12 months. Income commitment stood at 28.6%, with respective variations of 0.5% and 3.8%. The data are part of the monetary and credit statistics released this Wednesday (28) by the Central Bank of Brazil.

According to the BC, the volume of credit operations reached R$ 5.1 trillion in August, which represents an expansion of 1.6% in the month. There were increases of 0.9% in the corporate portfolio (balance of R$2.1 trillion) and of 2.1% in the individual portfolio (R$3.0 trillion).

In the comparison with the same period of the previous year, the growth of the total credit stock changed from 16.9%, in July, to 16.8%, in August. This movement resulted from the deceleration from 20.9% to 20.7% in the interannual growth of credit to individuals and the stability of 11.5% in the expansion of operations carried out with companies, considering the same periods of comparison.

In an attempt to control inflation in the country, the Central Bank put into practice an aggressive cycle of hikes in the basic interest rate, which was only interrupted this month, with the Selic rate at 13.75% per year.

Breaking down by type of borrower, the credit balance to individuals rose 2.1% last month and 20.7% in 12 months. For corporations, growth was 0.9% in June and 11.5% in 12 months.

Interest and spread

In the period, there was an increase to 40.6% per year in the interest charged by financial institutions on free credit, in which rates are freely agreed between banks and borrowers, an increase of 0.2 percentage point in the month – the growth was 10.9 points in 12 months.

In earmarked resources, which meet the parameters established by the government, there was a decrease of 1.7 points in the month, to 10.2%, with an increase of 2.2 points in 12 months.

The bank spread, the difference between the cost of funding institutions and the amount charged on loans to the public, rose to 28.3 percentage points in free credit, compared to 27.5 points in the previous month and 21.5 points in August 2021.

Last month, delinquency in the segment of free resources stood at 3.9%, compared to 3.8% in July.

In the minutes of last week’s Monetary Policy Committee meeting, the BC assessed that there was no substantial change in monetary policy transmission channels and that the transfer of the high Selic rate to final credit rates has occurred as expected, even though the concessions for companies remain stronger than expected.

monetary base

The monetary base added up to R$395.4 billion in August, growing 1.5% in the month, but still pointing to a reduction of 2.7% in twelve months. In the month, the volume of currency in circulation shrank 0.8% and bank reserves increased 12.9%.

Source: Infomoney