The total stock of credit in Brazil rose 1.0% in November compared to October, to R$ 5.264 trillion, corresponding to 53.8% of the Gross Domestic Product (GDP), disclosed the Central Bank this Tuesday (27) .
In the month, defaults in the segment of free resources, in which banks have autonomy to define interest rates, stood at 4.3%, against 4.2% in the previous month. The new level is the highest since June 2018, when it was at 4.4%.
Defaults had already risen 1.0% in October compared to September, reaching the highest level in almost four years, according to Central Bank data, amid the high cost of borrowing following the aggressive monetary tightening cycle.
Even in the face of a scenario of rising interest rates charged by banks and defaults, new loan concessions grew by 1.6% in November.
Amidst the monetary tightening promoted by the Central Bank, which has also seen an increase in credit concessions in riskier instruments, average bank rates rose in November.
Last month, the interest charged by financial institutions on free credit stood at 44.1%, an increase of 1.4 percentage points in relation to October — there was growth of 10.4 points in 12 months.
In earmarked resources, which meet the parameters established by the government, there was a rise of 0.7 points in the month, to 11.3%, with an increase of 2.4 points in 12 months.
The banking spread in free resources was 31.2 percentage points, from 30.6 points in October. In earmarked resources, the difference between banks’ funding cost and the final fee charged to customers was 4.0 points, against 4.2 points in the previous month.
This month, the BC increased its credit growth forecast in the country to 15.1% this year, compared to an estimate of 14.2% made in September. In the accumulated in 12 months until November, the total stock grew 14.7%.
Recently, the BC issued a warning about risks to the country’s financial stability in a possible scenario of increased public spending and uncertainty about the government’s debt trajectory, with an impact on risk premiums and inflation expectations.
According to the BC, the payment capacity of individuals has deteriorated even in the face of better indicators for the economy and the labor market.
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