Summary
• In February, the broader monetary aggregate in pesos (M3) grew 0.6%, driven by the increase in fixed-term deposits from the private sector. Meanwhile, the means of payment of the private sector, as expected in this period of the year, maintained their average balance practically stable.
• Time deposits in pesos in the private sector increased 4.7% in the month, with similar growth in all lending segments. The increase in retail fixed-term deposits continued to be favored by the minimum interest rate scheme established by the Central Bank since last October, exceeding the variations observed in the same month of previous years. Thus, the total of fixed-term deposits of the private sector accumulated a growth of close to 30% in the last year, while placements of less than $1 million totaled an increase of 38% in the same period.
• The liquidity ratio of the segment in national currency (sum of cash in banks, the current account of the entities in the Central Bank, the net passes with such entity and the holding of LEBAC, in terms of total deposits in pesos) stood at an average of 41%, 0.8 p.p. above January. Among its components, a greater participation of LEBAC holdings was observed.
• As expected for this time of year, loans in pesos to the private sector slowed their monthly rate of expansion, increasing 0.5% ($2,690 million), with a year-on-year variation of 19.1%. Personal loans were highlighted, favored by the policy of maximum interest rates established for this type of loan and by the credits granted within the framework of the PRO. CRE. Order.
• Monthly averages for most lending rates decreased by about 1 p.p. in the month. Such are the cases of the interest rates applied on advances to companies in the most operated segment (for more than $10 million and up to 7 days of term), those corresponding to financing with collateral and the interest rate of personal loans.
• Among the interest rates paid on time deposits in pesos, those of the retail segment remained stable, in line with the reference values established by the Central Bank; while the BADLAR of private banks increased 0.4 p.p. compared to January, averaging 20.6%.
• In February, the Central Bank adjusted the margin received by financial institutions that subscribe to LEBAC in dollars, so that they pass on most of the yield on these instruments to their customers. At the same time, it was decided to increase the minimum interest rates that depositors will receive for their time placements in foreign currency in the entities that purchase these LEBACs, with the aim of stimulating the maintenance of savings in dollars within the financial system. Towards the end of February, this measure resulted in an increase in interest rates on term deposits in dollars and, in particular, on placements of up to US$500,000.
