Monetary and credit statistics

PRESS RELEASE - March 26, 2018

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I - Financial system credit operations

The balance of financial system credit operations reached R$3,062 billion in February (-0.2% in the month and -0.3% in twelve months). In the month, corporate operations fell by 0.4% in the month to R$1,404 billion, while the household portfolio dropped 0.1% to R$1,658 billion. The credit/GDP ratio fell 0.2 p.p. to 46.4%, compared to 48.6% in February 2017.
Transactions with nonearmarked resources totaled R$1,568 billion, dropping 0.1% in the month and increasing 2.4% in twelve months. The balance of household operations fell 0.4% in the month to R$856 billion, highlighting a seasonal decline in cash credit card balances. The corporate portfolio grew 0.2% to R$712 billion, emphasizing expansions in advance on exchange contracts and guaranteed account.

The balance of earmarked transactions reached R$1,493 billion, consequent upon reductions of 0.3% in the month and 3.1% in twelve months. The corporate portfolio dropped 1.0% to R$691 billion, due to contract amortizations and a 9.9% reduction in financing with BNDES funds. Earmarked credit for individuals grew 0.3% to R$802 billion, especially reflecting housing credit operations.

As for the breakdown by economic sector, the downward trajectory of corporate operations was led by the monthly fall of 1.0% in credit channeled to the industrial sector (R$654 billion), especially to the manufacturing and construction segments. In regional terms, it should be highlighted the 0.4% drop in the balance of the Southeast region (R$1,592 billion).

Interest and default rates

The average cost of active credit operations, measured according to the Cost of Credit Indicator (ICC), reached 21.7% p.y. (+0.2 p.p. in the month and -1.4 p.p. in twelve months). In transactions with nonearmarked credits, the indicator closed at 35.2% p.y. (+0.4 p.p. and -4.0 p.p., respectively), while earmarked credits remained stable at 8.9% p.y.
The ICC spread, which corresponds to the difference between the ICC and the average funding cost of active credit operations, reached 14.5 p.p. (+0.2 p.p. in the month and -0.4 p.p. in twelve months), closing at 26.3 p.p. in the nonearmarked segment (+0.5 p.p. and -1.8 p.p. in the same periods) and at 3.5 p.p. in the earmarked segment.
The average interest rate of the financial system credit operations, which refers to operations carried out in the month, closed at 26.9% p.y. in February (+0.7 p.p. in the month and -5.3 p.p. in twelve months). The average cost reached 42.2% p.y. in the nonearmarked segment (+1.1 p.p. in the month) and 9.7% p.y. in the earmarked segment (+0.2 p.p. in the month).

In transactions with individuals, the rate reached 33.3% p.y. (+1.0 p.p. in the month, -8.3 p.p. in twelve months). In the nonearmarked segment, the rate rose by 1.9 p.p. in the month to 57.7% p.y. (non-payroll-deducted credit: +3.1 p.p.), non-regular revolving credit card: +10.1 p.p.). In the earmarked segment, the rate closed at 8.2% p.y.
In corporate transactions, the average interest rate reached 17.9%. p.y. (+0.3 p.p. in the month and -2.5 p.p. in twelve months). In the nonearmarked segment, the rate fell by 0.1 p.p. in the month to 22.2% p.y. (discount of trade bills and receivables: -1.0 p.p.; working capital: -0.1 p.p.). In the earmarked segment, the rate closed at 12.2% p.y. (+0.5 p.p.), reflecting a 0.8 p.p. increase in the cost of BNDES investment financing.
The average spread of operations carried out in the month closed at 20.4 p.p. (+0.7 p.p. in the month and -3.5 p.p. in twelve months), reaching 34.1 p.p. in the nonearmarked segment (+1.2 p.p. in the month) and 5.1 p.p. in the earmarked segment (+0.3 p.p.). The indicator grew 1.2 p.p. in household transactions to 27.1 p.p. and 0.3 p.p. in corporate operations to 11.1 p.p.
The default rate of financial system credit operations, considering credit balances overdue for more than 90 days, remained stable in both borrowers' segments (3.7% for household and 3.1% for companies), reaching 3.4% of the total portfolio. The indicator reached 5.0% in the nonearmarked segment (-0.1 p.p. in the month) and 1.8% in the earmarked segment (+0.1 p.p.).

II - Evolution of monetary aggregates

The average daily balance of the monetary base reached R$268.7 billion in February (down 3% in the month and up 6.8% in twelve months). The monthly variation reflected the reduction of 9.8% in the balance of bank reserves and of 1.8% in currency issued.
Among the monthly flows of factors conditioning the monetary base, operations with federal government securities accounted for a contractionary impact of R$14.9 billion (net purchases of R$14 billion in the secondary market and net placements of R$28.9 billion in the primary market), while National Treasury operations accounted for a contractionary impact of R$8.6 billion. On the other hand, foreign exchange repurchases in the forward interbank market and deposits of financial institutions (variation in the balance of mandatory deposits) accounted for expansions of R$10.1 billion and R$3.1 billion, respectively.
The average daily balance of the restricted means of payment (M1) totaled R$333.1 billion in February, down 2.3% in the month, corresponding to declines of -2.4% in currency outside banks and -2.2% in demand deposits. In twelve months, M1 grew 5.5%.
The balance of the means of payment in the M2 concept, which corresponds to M1 plus savings deposits and private securities issued by financial institutions, increased 0.6% in February, totaling R$2.5 trillion. This result was due to increases of 0.3% in savings deposits to R$727.6 billion, and of 0.8% in the balance of private securities to R$1.4 trillion. In the month, net redemptions of savings deposits reached R$708 million while net inflows of time deposits reached R$6.5 billion.
The M3 concept, which comprises M2, fixed-income fund quotas and government securities backing repurchase operations between the public and the financial sector increased 0.8% in the month to R$5.9 trillion, reflecting growth of 0.7% in fixed-income fund quotas and of 9.7% in the balance of repurchase operations, totaling R$3.3 trillion and R$111.5 billion, respectively. M4, the concept that comprises M3 plus public securities held by the nonfinancial public, rose 0.9% in the month and 8.4% over the last 12 months, totaling R$6.7 trillion.

III - Disclosure of credit forecasts and Quarterly Survey of Credit Conditions (PTC) results

As of June, the Central Bank of Brazil (CBB) will start publishing credit forecasts exclusively in the Inflation Report. This measure aims to align the specific purposes of each CBB communication instrument. Therefore, the Press Release - Monetary and Credit Statistics will be entirely devoted to the disclosure of those statistics. For the same reasons, PTC results will also be published in the Inflation Report, while its historical series will continue being published in the Time Series Management System (SGS) of the CBB.