巴黎银行-拉美-信贷行业-阿根廷信贷：目标更高-20170831-BNP Paribas-Argentina credit Aim higher.pdfVIP

Argentina credit : Aim higher Author Florencia Vazquez  Credit growth has accelerated sharply since 2016, and currently exceeds deposit growth. Economist  Up until now, banks were able to fund credit demand with excess liquidity . BNP Paribas Sucursal Buenos Aires  But, we expect upward pressure on deposit interest rates to start to mount. Local financial system has Since the 2015 election, the central bank has implemented a credible monetary framework with started to expand the objective of bringing inflation down to single-digit levels. The (small) local financial system has started to develop in a context of positive real interest rates. In particular, the Central Bank of Argentina (BCRA) has been keen on spurring credit growth. Credit is very low in terms The lack of a credible monetary policy framework and consequential high inflation had resulted of GDP in a very small, domestic financial system in which long-term credit was practically non existent. Total credit to the private sector stands at only at 13% of GDP and mortgage loans represent just 1% of GDP. Long-term credit is growing Last year, the central bank implemented a new scheme by which local banks are allowed to at a strong pace lend funds at a real rate plus inflation to finance home purchases. The new mechanism has been pretty successful, and mortgage loans have increased USD 1.4bn year to date. Most credit components But, the recovery in credit has been widespread and exceeds the expansion in mortgages (up are growin