Executive summary
The fourth quarter of 1996 was characterized by a marked growth in deposits, accumulating 25% in the year. Money in its broadest definition, M3*, continued to rise, exceeding 20% of GDP on an annual average. International reserves increased by US$5,200 million in the year and the ratio of gold and foreign exchange/financial liabilities of the B.C.R.A. remained at an average of 92%.
The growth of deposits, together with the greater dynamism of the economy, allowed credit to expand by 5% in the quarter. Interest rates maintained September levels or declined.
The balance sheet data of private entities reach October, so they include only in this month the events described in the first part of the Bulletin. The quarter under analysis (August-October 1996) shows a growth in assets (1% or $700 million) and in the net worth of private banks ($100 million). The balance sheets show an increase in loans, highlighting the growth of personal loans thanks to greater demand from households. The net delinquent portfolio of forecasts remained stable, at around 4.3% of financing. At the individual level, the collection of loans and deposits shows signs of deconcentration.
The result on equity increased substantially in the period, approaching 11% annualized in September and October. This increase is noteworthy as it was achieved thanks to a sharp decrease in costs and despite the reduction in net interest income.
In September, capital requirements for market risk were introduced in addition to the requirements for counterparty risk. Capital integration continued to be in surplus, with the 8-point growth in the share of “social capital” in the total integrated.
