Informe Sobre Bancos

Thisreport analyzes the situation of the Argentine financial system on a monthly basis.

Summary

• The balance of total financing to the private sector increased 1.4% in July, mainly
  due to the behavior of credit lines in pesos – mostly documents and personal. In
  year-on-year terms, total credit to the private sector grew 28.8%, above the variations
  recorded in previous months and the value observed a year ago. This dynamic was verified
  for both loans to companies and families.
• In July, the seventh stage of the Credit Line for Productive
  Investment (LCIP) began, which will be developed throughout the second half of the year. The target amount for this
  tranche reaches about $51,300 million. It is estimated that within the framework of the LCIP — from its inception in mid-2012 to the end of the first half of 2015 — a total amount of financing of around $137,000 million has been agreed in gross
  terms.
• In July, the non-performing loan ratio for the private sector remained stable at 1.9%. The
  level of non-performing loans taken by both companies and households remained unchanged
  with respect to June, at levels that stood at 1.3% and 2.7%, respectively.
  The broad coverage ratio of the non-performing portfolio of the private sector with accounting forecasts
  stood at 141% in the month.
• Total deposits in pesos increased 1.4% in July, driven by placements from the
  public sector (5.2%) and, to a lesser extent, from the private sector (0.4%). The monthly performance of
  private sector deposits was explained by term deposits, rather than offsetting the
  fall in the balance of demand accounts. In year-on-year terms, total deposits in national currency grew 34.9%, driven by placements from the private sector (38.9% YoY), mainly in time deposits (44.2% YoY). This occurred within the framework of the policies that the BCRA
  has been promoting to stimulate savings in national currency. In particular, at the end of July, new incentives were generated for the constitution of fixed-term deposits in pesos from the private sector.
• In July,
  the liquidity ratio (in domestic and foreign currency) increased slightly to 22.7%, mainly due to the increase in availability in pesos. For its part, the broad
  liquidity indicator (including the holding of LEBAC) stood at 44% of deposits, remaining practically unchanged from the previous month and above that registered a year ago.
• The net worth of the consolidated financial system grew 2.6% in the seventh month of the year
  (30.7% YoY), driven mainly by the effect of accounting gains. The integration of
  regulatory capital in the financial system reached 14.6% of total
  risk-weighted assets (RWA) in the period (13.6% in the case of Basic Net Equity – Tier one capital). The excess integration of
  aggregate capital stood at 91% of the regulatory requirement. All bank groups continued to show a surplus of regulatory capital in the period.
• In July 2015, the ROA of the financial system totaled 3.8%y, increasing compared to the previous month
  mainly due to the decrease in administrative expenses – after the extraordinary level reached last June – and the increase in the financial margin. All groups of
  financial institutions increased their monthly profitability. Thus, the accounting
  profits accumulated by the financial institutions as a whole in the last twelve months represented 3.6%
  of the average assets for the period.
• In order to expand and strengthen the protection of the rights of users of financial services, the BCRA recently adopted a set of provisions. In this sense, financial institutions may not charge charges or commissions for the provision of a service whose commission or charge is
  included in other concepts already charged. Likewise, banks may not apply charges or
  commissions to transactions carried out by users over the counter in branches other than the one
  where the account is opened. Finally, in no case may entities record profits for
  the insurance that their users must take out as a condition for accessing a financial service.