Monetary and credit statistics

PRESS RELEASE - February 27, 2018

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I - Financial system credit operations

The balance of the financial system credit operations reached R$3,066 billion in January, falling by 0.8% in the month and by 0.3% in twelve months (-1% and -3.9% in January 2017, in the same comparison basis). The monthly evolution reflected the seasonal reduction of 2.3% in the balance of corporate loans to R$1,408 billion, while household operations continued to grow (+0.5% to R$1,658 billion). The credit/GDP ratio decreased to 46.6% (48.8% in January 2017).

The nonearmarked portfolio reached R$1,568 billion (-1% in the month and +2.3% in twelve months). Corporate credit operations declined by 3.2% in the month to R$710 billion, highlighting the seasonal reduction in working capital operations and in the modalities directly linked to the market activity: discount of trade bills, discount of credit card invoices, compror. In operations with individuals, the balance grew by 0.8% in the month to R$858 billion, reflecting increases in overdraft accounts, payroll-deducted loans and financing for the acquisition of vehicles.

Earmarked credit totaled R$1,498 billion (-0.5% in the month and -2.8% in twelve months), a trajectory determined by the retraction in the corporate portfolio (-1.4% in the month to R$698 billion), notably in BNDES financing, which, in addition to the reduction in credit operations, also reflected the currency appreciation. The credit balance in the household segment rose by 0.3% to R$800 billion, reflecting growth of rural and real estate portfolios at regulated rates.

As for corporate loans, declines were observed in all economic sectors, such as trade (-4.2%, to R$242 billion) and manufacturing industry (-2.3%, to R$357 billion). As for regional credit distribution, including operations with households and companies, the sharpest declines occurred in the Southeast (-1.2%, to R$1,599 billion) and South (-0.8%, to R$561 billion).

Interest and default rates

In January, the average cost of active credit operations, assessed by the Index of Credit Cost (ICC), reached 21.5% p.y. (+0.1 p.p. in month and -1.5 p.p. in twelve months). As for nonearmarked operations, the index stood at 34.8% p.y. (+0.4 p.p. and -4.2 p.p., respectively), while, in operations with earmarked resources, it remained at 8.9% p.y.

The spread of ICC, which corresponds to the difference between the ICC and the average funding cost of credit portfolio operations, stood at 14.3 p.p. (+0.2 p.p. in the month and -0.5 p.p. in twelve months), reaching 25.8 p.p. in the nonearmarked segment (+0.5 p.p. and -2 p.p. in the same periods) and remaining at 3.5 p.p. in the earmarked segment.

The average interest rate of the financial system credit operations carried out in the month, including nonearmarked and earmarked resources, reached 26.3% p.y. in January, with an increase of 0.7% p.p. in the month (-6.6 p.p. in twelve months). The average cost reached 41.1% p.y. in the nonearmarked segment (+0.8 p.p. in the month) and 9.5% p.y. in the earmarked segment (+0.4 p.p. in the month).

Regarding credit operations with individuals, the average interest rate stood at 32.3% p.y., with an increase of 0.4 p.p. in the month and decline of 9.9 p.p. in twelve months. In nonearmarked segment, the average rate grew by 0.7 p.p., to 55.8% (overdraft accounts: +1.7 p.p.; personal credit excluding payroll-deducted loans: +9.3 p.p.), while, in the earmarked segment, it increased 0.2 p.p. to 8.2% p.y. (real estate: +0.3 p.p.).

In the corporate segment, the average rate reached 17.6% p.y. (+0.7 p.p. in the month and -3.6 p.p. in twelve months). In the nonearmarked segment, the rate rose by 0.7 p.p. to 22.3% p.y. (discount of trade bills: +3.4 p.p.; working capital: +0.9 p.p.). In the earmarked segment, the rate grew by 0.9 p.p., to 11.7% p.y. (BNDES investment financing: +1.2 p.p.).

The bank spread, concerning nonearmarked and earmarked operations contracted in the month, reached 19.8 p.p. in January (+0.9 p.p. in the month and -4.1 p.p. in twelve months), reflecting the increase of spreads in the nonearmarked (+1.1 p.p. in the month, to 32.9 p.p.) and earmarked segments (+0.5 p.p., to 4.8 p.p.). As for household loans, the spread stood at 25.9 p.p. (+0.6 p.p. in the month) and at 10.8 p.p. in the corporate segment (+0.9 p.p. in January).

The default rate of financial system credit operations, concerning the participation of balances with delays over ninety days, reached 3.4% in January (+0.2 p.p. in the month and -0.3 p.p. in twelve months). Default rate in the household segment stood at 3.7% (+0.2 p.p. in the month) and at 3.0% in the corporate segment (+0.1 p.p. in the month).

II - Evolution of monetary aggregates

The average daily balance of the monetary base reached R$277.1 billion in January, dropping 1.8% in the month and increasing 6.4% in twelve months. The monthly variation reflected a decrease of 3.2% in the currency issued and an increase of 6% in bank reserves, still reflecting the seasonal expansion in currency demand occurred in December.

Among the monthly flows of factors conditioning the monetary base, it should be highlighted operations with federal government securities, with a contractionary impact of R$27.6 billion (net sales of R$88.1 billion in the secondary market and net redemptions of R$60.5 billion in the primary market), and National Treasury operations, with an expansionary impact of R$3.1 billion.

The average daily balance of the restricted means of payment (M1) totaled R$341.1 billion in January, a decrease of 4.7% in the month, reflecting declines of 6.9% in demand deposits and 3% in currency outside banks. M1 grew by 4.8% in twelve months.

The means of payment in the M2 concept, which corresponds to the balance of M1 at the end of the month plus savings deposits and securities issued by financial institutions, fell by 1.4% to R$2.4 trillion in January, reflecting declines of 10.1% in M1 and 0.2% in securities (balance of R$1.4 trillion), despite the increase of 0.9% in savings deposits (R$726 billion). In January, there were net redemptions of R$5.2 billion in savings accounts and R$5.9 billion in time deposits.

M3, which comprises M2, quotas of fixed-income funds and government securities backing repurchase operations between the public and the financial sector, grew by 0.5% in the month to R$5.8 trillion, consequent upon increases of 1.6% in the quotas of fixed-income funds (balance of R$3.3 trillion) and of 10.7% in repurchase operations (R$101.7 billion). M4, which comprises M3 and government securities held by the nonfinancial public, grew by 0.4% in the month and 8.3% in twelve months, totaling R$6.6 trillion.