Bank delinquencies rose (due to pandemic and normalization)

It is worth remembering that, to soften the impact of the coronavirus, the BCRA guaranteed that entities increase their payment arrears by 60 days before reclassifying a debtor in a worse category.

It was through communications A-6938 and A-7107 that the BCRA allowed until last May, to increase by 60 days the default periods admitted in categories 1, 2 and 3 of the consumer and commercial portfolios and until that date it suspended mandatory recategorization. Thus, for example, to pass a category 1 to 2 debtor, the default should not be 30 days but 90 days.

Now, according to the latest official statistics, debtors with category 2 or worse (with arrears greater than 30 days) represented 7.7% of total loans in June, being 8.1% in the case of commercial loans to companies and 7.1% in consumer loans for individuals. These levels were 5.5%, 6.8% and 3.2% respectively in the previous semester. It should be noted that an abnormal (or delinquent) portfolio is considered to be the total number of debtors in a situation of 2 to 6 of the total portfolio.

In this regard, a report from the consulting firm Curat- Martínez Larrea It shows that within this panorama, foreign banks are the ones with the best portfolio quality while public banks the worst, due to the high uncollectibility in companies. Since foreigners have a total delinquency of 4.1% (product of 5.4% for individuals and 3.5% for companies) and the public 12% (7.1% and 15.6% respectively).

In national private banks the total delinquency is 6.9% (8.3% and 6.1% respectively) while in the case of non-banking entities the delinquency is 8.9% but they show the highest level of the system for individuals with 13.5% and 6.7% for companies.

Regarding regionality The report highlights that the quality of the portfolio of individuals in a dependency relationship worsened in all regions, doubling delinquency, GBA and Cuyo being the most affected regions (for having a level of more than 10%) but with the greatest impact in the provinces of San Juan and San Luis, which exceed 13%. While in Misiones, Chaco and La Rioja, loans to individuals showed the best combination of low delinquency and high growth in the last year. In the case of the situation of the commercial loan portfolio to companies, a deterioration in quality is observed in all regions, except in Patagonia.

The Pampeana area with a 10% delinquent portfolio is the most affected. But well above the national average are Santa Fe, where the Vicentin case made a dent, and La Rioja, which show a level of credit delinquency of companies higher than 17% and 19% respectively.

On the contrary, Santa Cruz and Misiones lead the group of provinces with the lowest arrears and the highest growth in commercial credit, according to the report. It is worth noting that public banks are the ones with the worst performance, as they have more than 15% of the non-performing portfolio of companies over the total.

At the sectoral level, Industry, Construction and Commerce are the productive sectors most affected in their ability to pay at the country level by the pandemic, but at the provincial level they present different degrees of delinquency, creating a wide range of non-compliance.

Regarding consumer loans, which are basically personal and credit card loans, it is observed that financial companies and digital banks are the worst performers, having 13% of the portfolio in default of the total. While the most affected provinces are Corrientes, San Juan and San Luis.

Faced with this general situation, the former director of the Central Bank and consultant, Pablo Curat, explained to this newspaper that “financial institutions are focused on improving the quality of the processes for early detection of arrears, through scoring models and systems. , and in optimizing the collection management of delinquent loans, directly or by outsourcing the collection to specialist companies ”.

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Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Phone : +1 281-333-2229

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