Expanded credit balance grows 1.5% in October, and reaches BRL 14.5 trillion

The balance of expanded credit to the non-financial sector reached R$ 14.5 trillion in October, registering growth of 1.5% in relation to the previous month. The value recorded in the month represents 153.3% of the country’s GDP. The data were released this Monday (28), by the Central Bank of Brazil.

According to the BC, this increase was mainly explained by external debt loans, with expansion of 5.6%, despite the 2.8% exchange rate appreciation observed in the month, and by financial sector loans in the domestic market, which grew by 1. 1% from one month to another.

In the interannual comparison, expanded credit grew 10.8%, with emphasis on growth in the National Financial System (SFN) loan portfolio, with a rise of 15.9%, and in the public debt securities portfolio, which grew of 9.8%.

Extended credit to families reached 35.4% of GDP in October, reaching R$ 3.36 trillion. The growth in this type of modality reinforces the increase registered in the credit balance. Credit to households also increased by 2% in October, accumulating an increase of 18.7% in twelve months, as a result of the behavior of loans in the financial sector.

default rises

Delinquency on total credit in the financial system, which considers arrears of more than 90 days, increased by 0.1 percentage point, reaching 3%. By segment, delinquency increased by 0.1 pp in free credit, reaching 4.2%, while delinquency in earmarked credit remained stable at 1.2%.

“Family debt with the SFN reached 49.9% in September, which represented stability in the month and an increase of 2.3 pp in 12 months. On the same basis of comparison, the income commitment recorded respective increases of 1.0 pp and 3.3 pp, standing at 28.7%.”, highlights the BC document.