Brasília – The total of all lending operations granted by banks declined 3.5% in 2016, according to data from the Brazilian Central bank (BC) made public this Wednesday (26). The total of lending operations ended the year at BRL 3.107 trillion (USD 976 billion), reaching 49.3% of the Gross Domestic Product (GDP). In December 2015, the ratio was 53.7%.
According to a BC analysis, the “credit contraction in 2016 reflected the downturn of the economic activity and its impacts on consumer demand and investments and the increase in risk perception by the financial system.”
The default rate, considered as arrears over 90 days for individuals, ended the year at 3.9%, declining 0.2 percentage point in December over November and 0.3 percentage point in the year. The corporate default rate index remained stable at 3.5% in the month and increased 0.9 percentage point in the year.
*Translated by Sérgio Kakitani