More evidence: ( excerpts)
Peru and Latin America are taking shape of conditions for credit and financial crisis."
Marthans, who is professor of the Faculty of Economics at the University of Piura, said: Now we see a Peruvian extreme laxity in bank regulation, since financial institutions are acting very aggressively, and never been seen in 30 years," said Marthans to realize that the lines of credit cards being tripled by banks, without customers request.
The whole story:
Late credit payments on the rise.
In September rose 17.7%. Debt refinancing and avoiding penalty is reflected in the delay.
There are relaxed lending policies.
When banks take pride in its recent number of credits delinquencies only fell to 1.63% in October, some evidence emerging that all is not as good as it appears in the statistics.
And that level of default on bank loans, like all averages, would be statistically clouding the growing trend in loans in arrears.
"In Peru, analysts do not speak with sincerity in default, but it has been increasing steadily in consumer loans since 2007, and the trend is to continue to rise," said Juan Jose Marthans, former head of SBS in Canal N.
In fact, reports of the SBS show that in the first nine months of the year, total-due loans and past due loans-judicial collection of banks grew by S /. 254 million, or 17.7%, a rate that doubles the increase in outstanding loans (8.8%) in that span.
Even in 12 of the 15 banks operating in the country, due loans grew by more than 20% during the period, and four them grew more than 35%.
However, these details go unnoticed in the average arrears total bank loans, because such institutions conveniently refinance debt problems, or, simply, punish and remove from their balance sheets.
For example, in the credits for consumption by individuals, banks increased the amount of refinancing and restructuring of 10.8% in the period under review.
Banks offset the costs of these operations, with interest rates and high fees for the credits to reschedule with your customers.
Meanwhile, the penalty of portfolio-common practice for banks to maintain the quality of their loans, totaled S /. 759 million in the first half of the year for which financial institutions had to cover 100% with money supplies.
According Marthans, the resources to clean their portfolios are the surplus of the banks: "Luckily, the bank credit policies were quite cautious in previous years, leaving plenty of slack to deal with equity issues, and an ability to cover past-due portfolio other systems have not. "
The fact of having these surpluses have prompted the banks to blast a path of loans raises concerns in some sectors.
Picking up the alert launched by Michael Porter, Marthans, who is professor of the Faculty of Economics at the University of Piura, said: "Peru and Latin America are taking shape the conditions for credit and financial crisis."
Bankers Association reported yesterday that consumer credit cards broke record in October, giving further ammunition to those who argue that it will generate a credit boom (see page 19).
"Now we see a Peruvian extreme laxity in bank regulation, since financial institutions are acting very aggressively, and never been seen in 30 years," said Marthans to realize that the lines of credit cards being triplicated by banks, without customers request.
MANAGEMENT - 23/11/1910