:quality(85)/cloudfront-us-east-1.images.arcpublishing.com/infobae/VGPMSPR73BBJXMS2QYWDMKSWLE.jpg "Six municipal savings and loan banks in Peru record losses of S/90 million")
Peruvian economy accumulates a drop –0.7% till October 2023, According to the record HereAs a result of cooling private investment, Slow consumption and low productivity in agriculture and fisheries sectors. According to unofficial data, the gross domestic product (GDP) has registered a contraction for the last four consecutive quarters of the year. Depression.
This adverse economic environment has had a profound impact on the financial performance of the country Municipal Savings and Loan Banks from the country.
Till the end of November 2023, these financial institutions show a significant decline in their profits and estimate net profit S/135.8 millionIt indicates a fall 57.7% According to the data, compared to the same period last year Banking Supervision, Insurance and AFP (SBS).
According to economist César Antunez, this performance is mainly attributed to the higher cost of raising resources (financial costs), which experienced a 67% year-on-year increase in November.
“This increase contrasts with the increase in financial income, which stood at 21.2%. In addition, the ratio of financial expenses to financial income increased from 23.1% in November 2022 to 31.9% in November 2023,” he said.
The default rate Financials were flat at 5.9% in November. Financial institutions led the way with the highest delinquency rates Sullana Petty, which registered 16% by default. They follow him Pita box 10.7%, Dagna Petty with 10.1%, and Santa's box with 7.9%. Medium-sized enterprises, with 13.6%, have committed the highest levels of crime, followed by small enterprises (6.5%) and micro enterprises (5.5%).
11 Municipal Savings and Loan Banks and one Metropolitan Savings Bank, Only six recorded losses This is approximately S/90 million. Among the most profitable Municipal Savings Banks, the following stand out:
- Caja Arequipa (S/ 64.7 million) has a market share of 24% of the total loans of municipal savings banks,
- Caja Buera (S/56.1 million) 14.8%,
- Cusco (S/45.7 million) and with a concentration of 15.6%.
Infobay approached SBS data As compared to the 2022 period, it was verified that there are six Municipal Savings and Loan Banks registering in the red. Below is the list:
- Qaja Sullana: -S/74 million 008,000
- Dagna Petty: -S/ 1 million 484,000
- Menas Fund: -S/5 million 630,000
- Caja Lima: -S/7 million 503,000
- Baida Box: -S/1 million 413,000
- Santa Box: -S/238,000
is facing the threat of adverse impact like El Nino event, The outlook for the first quarter of 2024 looks bleak as economic recovery may take time. According to estimates by MEF and BCR, GDP will increase by 3% in this new year.
“In the affected areas (mainly in northern Peru) the FEN will limit its ability to make payments due to low or no economic activity, which will have an impact on the agency of the financial institution,” says the expert.
The effects on these financial institutions include lower financial and financial services income, increases in provisions, higher delinquencies and the possibility of financial institutions recording losses in their results.
Municipal savings and loan banks are institutions that prioritize small, small and medium-sized businesses. They were developed with the objective of providing access to credit to the lower income business segments and social strata, with the aim of contributing to:
- Regulate small businesses and integrate them into the economy.
- Create sustainable employment.
- Improving the quality of life of the most needy families.
- Encourage decentralized development.
Los Municipal Finance As they are members of the Deposit Insurance Fund, they have the same deposit protection as any other bank. General Law of Financial System and Insurance System.
He Deposit Insurance Fund (FSD) Savings and CTS protects deposits Organizations monitored by SBS: Banks, Financial Institutions, Municipal Savings Banks and Rural Savings and Loan Banks.
According to a financial expert, Jorge Carrillo AcostaThis support allows the saver to recover his money (including interest earned) up to a specified maximum amount in the event of potential insolvency of any of the insured financial institutions.
SBS has updated the maximum coverage amount Deposit Insurance Fund December 2023 to February 2024 for S/123,810.
Banking, Insurance and AFP Supervision (SBS) is an autonomous body responsible for the prevention of money laundering and terrorist financing crimes in the financial system, insurance system, private pension fund management system and its competition area. Its objective is to protect the interests of depositors, policyholders and members of the private pension scheme. SBS is responsible for guaranteeing the soundness and efficiency of these sectors in order to contribute to the country's economic and financial stability.
