I - Financial system credit operations
Total credit operations in the financial system, including operations with earmarked and nonearmarked resources, reached R$3,116 billion in July, falling by 0.4% in the month and growing by 0.2% in twelve months (-0.6% and +0.9% in June, respectively). The monthly reduction was consequent upon a decline of 0.9% in the corporate portfolio, to R$1,586 billion, and an increase of 0.1% in the household portfolio, to R$1,530 billion. The credit/GDP ratio closed at 51.4%, compared with 51.9% in June and 53.3% in July of the previous year.
The credit portfolio with nonearmarked resources reached R$1,554 billion, reflecting decreases of 1% in the month and 2.5% over twelve months. The balance of the corporate segment fell by 1.8% in the month, totaling R$755 billion, highlighting declines under working capital and other nonearmarked credits (mainly acquisition of receivables). Nonearmarked household credit operations totaled R$799 billion (-0.1% in the month), highlighting the increase under personal payroll-deducted loans and the decline under vehicle financing.
The earmarked credit portfolio totaled R$1,562 billion, with increases of 0.1% in the month and 3% over twelve months. The balance of household credit operations grew by 0.2%, reaching R$732 billion, with an expansion of 0.8% under house financing. Corporate operations remained stable at R$830 billion.
Among borrowers' economic activity segments, it should be highlighted the monthly declines under trade (-2%, balance of R$274 billion), other services (-1.6%, balance of R$193 billion) and the manufacturing industry (-0.7%, balance of R$433 billion). The balance of credit channeled to the private sector decreased by 0.5% to R$2,861 billion, while the balance of credit to the public sector increased by 0.2%, totaling R$255 billion.
Considering the balance of credit operations above R$1,000, the level remained stable in the Northeast (R$399 billion) and fell in the other regions: South (-0.5%, R$543 billion), Southeast (-0.4%, R$ 1,674 billion), Central-West (-0.4%, R$324 billion) and North (-0.4%, R$116 billion).
I.1 - Interest and default rates
The average interest rate of financial system credit operations, including operations with nonearmarked and earmarked resources, reached 33% p.y. in July, with increases of 0.4 p.p. in the month and 4.6 p.p. over 12 months. The average rate reached 52.7% p.y. in the nonearmarked segment (+0.5 p.p. in the month and +8.5 p.p. over 12 months), and 11.5% p.y. in the earmarked segment, (+0.5 p.p. and +1.4 p.p., using the same comparison basis).
In the household segment, the average interest rate reached 42% p.y., with increases of 0.2 p.p. in the month and 5.7 p.p. over 12 months. In the month, the average rate closed at 71.9% p.y. in the nonearmarked segment, consequent upon an increase of 0.5 p.p. (personal credit other than payroll-deducted loans, +3.9 p.p.; overdraft accounts, +2.7 p.p.; revolving credit cards, +2.3 p.p.). The average rate climbed by 0.1 p.p. in the earmarked credit segment, reaching 10.6% p.y.
With regard to corporate loans, the average interest rate reached 22.1% p.y., rising by 0.4 p.p. in the month and 2.3 p.p. over 12 months. As for operations with nonearmarked resources, the average rate increased by 0.1 p.p. to 30.4% p.y. (discount of trade bills, +3 p.p.; export financing, +1.6 p.p.; guaranteed account, +1.3 p.p.). In the earmarked segment, the interest rate rose by 1 p.p. to 12.7% p.y (investment financing with BNDES resources, +1.4 p.p.).
The bank spread of operations with nonearmarked and earmarked resources reached 23.2 p.p. in July, reflecting increases of 0.5 p.p. in the month and 4.8 p.p. over 12 months. The monthly increase reflected expansions of 0.5 p.p. and 0.2 p.p. under the corporate and household segments, respectively.
The default rate of financial system credit operations related to credit balances overdue for more than 90 days corresponded to 3.6% in July (+0.1 p.p. in the month and +0.6 p.p. over 12 months), reaching 4.1% in the household segment (+0.1%) and 3% in the corporate segment (stable). The default rate reached 5.7% in the nonearmarked segment (+0.1 p.p.), and 1.4% in the earmarked segment (stable).
II - Evolution of monetary aggregates
The average daily balance of the monetary base totaled R$237.5 billion in July, with increases of 0.4% in the month and 1.5% over twelve months. This monthly variation reflected an increase of 0.5% under currency issued and a decrease of 0.2% under bank reserves.
Among the monthly flows of factors conditioning the monetary base, items worth highlighting are National Treasury operations and net purchases of foreign currency on the interbank market, with respective expansionary impacts of R$30.2 billion and R$19.2 billion. Conversely, operations with federal government securities accounted for a contractionary impact of R$48.4 billion, based on net sales of R$81.7 billion on the secondary market and net redemptions of R$33.3 billion on the primary market.
The average daily balance of the restricted means of payment (M1) reached R$304.1 billion in July, with a monthly increase of 1.7%, due to increases of 3.2% under demand deposits and 0.6% under currency outside banks. In twelve months, M1 dropped by 0.5%.
The balance of the means of payment in the M2 concept, which corresponds to M1 plus savings deposits and private securities, increased by 0.3% in July to R$2.3 trillion. This result reflected an increase of 0.4% in savings deposits to R$642.4 billion, despite net redemptions of R$1.1 billion in the month. The balance of private securities rose by 0.5% to R$1.3 trillion, with inflows of R$3.4 billion in time deposits.
M3, which comprises M2 and quotas of fixed-income funds and government securities backing repurchase operations between the public and the financial sector, grew by 1.1% in the month, reaching R$5 trillion, reflecting an increase of 1.8% in quotas of fixed-income funds, totaling R$2.5 trillion. M4, which comprises M3 and government securities held by the nonfinancial public, grew by 0.7% in the month and 11.3% over the last twelve months, totaling R$5.9 trillion.