In line with the expansionary monetary policy,
credit to the private sector grew 8% year-on-year in November 2019, the
Central Reserve Bank of Peru (BCR) has reported.
The issuing entity revealed that credit in Peruvian Soles continues to grow at double-digit rates, while credit in U.S. Dollars has seen a moderate growth due to higher preference for local funding and interest rates in Peruvian Soles, which remained below historical averages.
The BCR said that the credit dollarization ratio was 27% in November, lower than the level observed in December 2018 (28%), mainly due to lower dollarization of credit to people.
"Similarly, the dollarization of mortgages continued its downward trend, in line with the behavior observed in recent years after the implementation of the credit de-dollarization program," the bank said.
"Credit to private sector is expected to grow at rates higher than nominal GDP growth, so that its ratio —in relation to GDP— would increase from 42% in 2018 to 44% in 2019, within a context of flexible monetary and financial conditions," it added.
The BCR stated that the credit deposit ratio, which includes public and private sectors, decreased from 126% in December 2018 to 124% in November 2019. The ratio —in Peruvian Soles— declined from 149% to 148% in the same period.
(END) CNA/RMB/MVB
Published: 1/7/2020