Executive summary
As of March 1997, deposits accumulated an annual growth of 20%, which determined that monetary resources, M3*, reached $67,500 million. The abundance of liquidity allowed the downward trend in interest rates to continue. The B.C.R.A. increased the minimum requirements in February by one percentage point to 18% for liabilities of less than 90 days.
Loans grew at an annual rate of 12.7%, with the most significant increases recorded in the operations of personal loans, advances and mortgages. The liquid assets of the financial system increased again during the first quarter of the year.
The ratio of Gold, Foreign Exchange and Placements/Financial Liabilities was 94.7% on average for the quarter, two percentage points higher than the percentage of the previous quarter. By the end of the quarter, the ratio reached 96.7%. The sustained improvement in the relationship is associated with the cancellation of rediscounts and active pass operations for the B.C.R.A. and the sale of public securities with its own portfolio in a very favorable financial context.
The balance sheet data of private entities up to January show a growth in assets of 9%. A little more than 20% of the increase is explained by the completion of the privatization process of three provincial public banks. In the clear recovery train, private banks registered a new improvement in their portfolio irregularity indicators. Profitability continues to be positive and significant increases were recorded in the results for interest and services closely linked to traditional banking operations.
The counterparty risk capital requirement increased by 2% compared with October 1996. Integration increased by a greater proportion — about 5 percent — and led to an increase in excess integration estimated at 4.8 percent of risk assets as of January 1997. At the end of the period, integration reached 19.9% of risk assets according to international methodology.
