Informe de Otros Proveedores No Financieros de Crédito

The Central Bank of the Argentine Republic (BCRA) groups under the category “Other Non-Financial Credit Providers” (OPNFC) companies that grant financing to the general public without being financial institutions or non-bank issuers of credit or purchase cards.

The Report on Other Non-Financial Credit Providers provides a semi-annual review of the evolution of the loans granted by these entities, the profile of their debtors and the financing conditions. It analyzes the amounts borrowed, interest rates, levels of irregularity, and financing they receive from the financial system and the capital market, offering a detailed overview of the segments of the population that access this type of credit.

Summary

OPNFC Number | The BCRA’s supplier registry reached 357 companies in August 2021, with a net increase of 34 companies compared to January 2021 (46 registrations and 12 cancellations).
Amount of financing | As of June 2021, a total of 264 companies (74% of those registered) submitted information on their financing portfolio, registering balances of $313,000 million. The evolution of financing in constant pesos shows a reversal in its trend as of July 2020, registering a year-on-year growth of 17% in June 2021 and 9% compared to October 2020.
Excluding credit card assistance, the loan portfolio of the OPNFCs reached $144,000 million in June 2021, registering a year-on-year increase of close to 1% measured at constant prices.
Funding Amounts by Provider Subgroups | All subgroups of credit providers showed a nominal increase in their financing balances compared to June 2020. Non-bank card issuers (ETCNBs) and fintechs performed the best
. Both subgroups more than doubled their amounts during the indicated period.
Total debtors | The number of debtors assisted by OPNFCs exceeded 6.6 million people in June 2021, 4% more than in the same month of 2020.

Interest Rate | The weighted average APR stood at 93% in June 2021 for the total of the OPNFCs, increasing 7 percentage points compared to June 2020. Significant differences in interest rates continue to be observed depending on the type of provider.
While Cooperatives and mutuals (72%) and Leasing & Factoring companies (44%) exhibited rates below the average of OPNFCs, Fintechs (132%) and appliance sales companies (97% in the average of the first half of the year) were above.
The rates charged by the ETCNBs (91%) are similar to the average rate result of the OPNFCs.
Irregularity | The irregularity of the credit portfolio of the OPNFCs (excluding credit card assistance) decreased 15 p.p. compared to June 2020 and 11 p.p. less compared
to October 2020, thus registering 26% in June 2021. This is explained by the increase in financing granted, mainly from ETCNBs and, secondarily, from Fintech companies
. When analysing irregularity by subgroups, Leasing & Factoring presented the lowest levels and Cooperatives and mutuals the most stable.

Financing by financial institutions to OPNFC customers | The number of people who have financing from both OPNFCs and financial institutions decreased throughout the period analyzed, reaching around 3.4 million in June 2021.
The same trend was observed in the number of loans, from 9.4 million in January 2018, reaching just over 6.8 million in June 2021, 10% lower compared to June 2020 and 3% lower compared to October 2020.
However, the balance of financing from financial institutions to OPNFC customers reached around $722,000 million in June 2021, a figure that more than doubles the assistance of the OPNFCs.
Irregularity of debtors shared with financial institutions | The level of irregularity of the debt with the financial institutions of the clients of the OPNFCs reached 7.1% in June 2021, 2 p.p. above October 2020 and being at all times significantly lower than the irregularity of the OPNFC portfolio.
Funding of OPNFCs with financial institutions | The nominal debt of the OPNFCs with financial institutions, after reaching minimum values in July 2020 ($17,300 million), showed sustained growth in the following months to exceed $41,600 million in June 2021. This balance implies a doubling compared to June 2020 and 44% higher at constant prices compared to the cut-off month of the last report in October 2020.
Irregularity of OPNFCs with financial institutions | Total irregularity decreased to 5% in June 2021, 5 p.p. lower than October 2020 and 11 p.p. lower than in June 2020. It continues to be explained mainly by the companies selling household appliances, while Fintech and Cooperatives and mutuals reflect zero irregularity throughout the period.