I - Financial system credit operations
The total balance of credit operations, including nonearmarked and earmarked resources, reached R$2,963 billion in November, up 1.3% in the month and 11.8% in twelve months, compared to respective variations of 0.8% and 12.2% in October. As a result, the credit/GDP ratio reached 58%, against 57.6% in the previous month and 55.1% in November 2013. The monthly expansion was consequent upon variations of 1.6% in the corporate portfolio and 0.9% in the household portfolio, highlighting the seasonal behavior of nonearmarked corporate credit operations.
The credit portfolio with nonearmarked resources totaled R$1,553 billion in November, a 0.9% increase in the month and 4.7% in twelve months. Corporate operations expanded more significantly in the month (1.6%), reaching R$779 billion, with emphasis on the modalities of working capital, overdraft accounts and other credits (especially acquisition of receivables). Household loans totaled R$775 billion, up 0.2% in the month and 4.9% in twelve months, impacted by the upward trajectory of payroll-deducted loans and revolving credit operations.
Earmarked credit operations totaled R$1,410 billion, up 1.7% in the month and 20.7% in twelve months. Corporate operations in this segment totaled R$795 billion, for a monthly increase of 1.5%, highlighting the expansion of investment financing with BNDES resources, partially influenced by the exchange rate depreciation in the period. Household operations reached R$615 billion, for a monthly growth of 1.9%, with most significant variations in the house and rural portfolios.
Considering credit operations by economic activity sector, the private sector posted a balance of R$2,772 billion in November, up 1.2% in the month and 10.4% in twelve months. It should be highlighted monthly increases in the segments of trade (2.4%); other services (1.5%), and industry (1.3%), reaching respective balances of R$249 billion, R$440 billion, and R$540 billion, influenced by seasonal factors. Corporate and household house financing totaled R$493 billion, for a monthly increase of 1.8%, equivalent to 9.7% of the GDP, compared to 9.5% in October and 8% in November 2013. Financing granted to the public sector added up R$192 billion, for a monthly growth of 2.3%, reflecting expansions of 2.6% in operations with states and municipalities and 1.9% with federal government entities.
I.1 - Interest and default rates
The average interest rate of financial system credit operations, comprising nonearmarked and earmarked loans, reached 21.3% p.a. in November, registering stability in the month and expansion of 1.3 p.p. in twelve months. Considering nonearmarked loans, the average cost closed at 33% p.a., a 0.1 p.p. variation in the month and 3.6 p.p. in twelve months. As for earmarked credit loans, the average rate remained at the level of 7.9% p.a. in the month, up 0.4 p.p. in twelve months.
In the household segment, the average cost fell by 0.1 p.p. in the month and increased by 1.9 p.p. in twelve months, closing at 28% p.a. In contracts with nonearmarked resources, the rate reached 44.2% p.a., due to a monthly increase of 0.2 p.p. In the earmarked credit segment, the average cost of household operations declined 0.1 p.p. in the month to 7.8% p.a.
With regard to corporate loans, the average interest rate remained stable in the month at 16% p.a., up 0.8 p.p. in twelve months. In operations with nonearmarked and earmarked resources, the average rate increased by 0.1 p.p. in the month to 23.5% p.a. and 8% p.a., respectively.
The banking spread for operations with nonearmarked and earmarked resources declined by 0.2 p.p. in the month and rose by 1.1 p.p. in twelve months, closing at 12.6 p.p. Household and corporate indicators reached 18.9 p.p. and 7.6 p.p., respectively. As for nonearmarked credits, the spread declined 0.2 p.p., closing the month at 21.2 p.p., while, in the earmarked segment, it remained stable at 2.8 p.p.
The default rate of financial system credit operations overdue for more than ninety days remained stable in the month and dropped 0.1 p.p. in twelve months, closing at 3%. Considering household loans, the default rate reached 4.2%, for a monthly reduction of 0.1 p.p., while the indicator for corporate operations remained stable at 2%. In the nonearmarked segment, the default rate decreased 0.1 p.p. in the month to 4.9%, while, in the earmarked segment, it remained stable at 1%.
II - Evolution of monetary aggregates
The average daily balance of the monetary base reached R$236 billion in November, up 0.8% in the month (expansion of 1.1% under currency issued and reduction of 0.8% under bank reserves) and 6.5% in twelve months.
Among the monthly flows of the factors conditioning the monetary issue, it should be emphasized financial institutions deposits, which reflected the reduction of the percentage of compulsory payment on rural savings, from 18% to 13%, and the adjustments in operations with derivatives, with respective expansionary impacts of R$11.8 billion and R$8.7 billion. Expansionary impacts were partially offset by operations with government securities, with a contraction of R$8.1 billion, which reflected net placements of R$24.5 billion on the primary market and net purchases of R$16.4 billion on the secondary market.
The restricted money supply (M1) posted an average daily balance of R$319.3 billion in November, for a monthly increase of 0.7%, resulting from expansions of 1.3% in currency held by the public and 0.1% in demand deposits. Cumulative M1 growth over twelve months reached 4.2%.
The balance of money supply in the M2 concept, which corresponds to M1 plus savings deposits and private securities, grew by 1% in November to R$2.1 trillion. This result was consequent upon expansions of 4.5% in the M1 balance and of 0.6% in the balance of savings deposits, which totaled R$653.7 billion, reflecting net inflows of R$2.5 billion. The balance of private securities, R$1.1 trillion, remained stable, despite net redemptions of R$9.5 billion in time deposits.
M3, which comprises M2, quotas of fixed income funds, and public securities backing repo operations contracted between the public and the financial sector, increased 1% in the month to R$4.3 trillion, reflecting M2 expansion and the 0.8% increase to R$2 trillion in the balance of quotas of fixed income funds in October. M4, including M3 and public securities held by nonfinancial entities, grew 1.4% in the month and 14.3% in 12 months, totaling R$5 trillion.