Publications

Spanish banks are rapidly translating the reduction in official interest rates to new lending operations' interest rates, which benefits borrowers. In the case of deposits, the transmission is slightly slower than in the hiking cycle, which benefits depositors.

The Board of BanRep kept the policy rate unchanged at 9.5%. Notably, concerns persist regarding inflation, exchange rate volatility, and fiscal uncertainty.

After 2 weeks of deceleration, the weekly growth of FX-adjusted credits accelerated in the second week of September from 0.2% to 0.6% due to consumer credits in the overall sector.

In the week ending by March 22nd, foreign currency adjusted weekly credit growth rose from 0.3% to 0.7% due to consumer credits in the sector. Total credits’ 13-week annualized trend hovers around 35%.

Uruguay continues to show a solid, liquid financial system with a good quality loan portfolio that translates into low levels of non-performing loans. Compared to the rest of the region, the penetration levels of the financial system are mid-range, which gives it a high growth potential for the medium term.

In the week ending by February 9, foreign currency adjusted weekly credit growth decelerated to 0.5% from 0.7% due to consumer credits in private banks. Total credits’ 13-week annualized trend rose from 25.4% to 27.2% due to carry-over impact of the previous two weeks.

In the week ending by January 19, foreign currency adjusted weekly credit growth decelerated and turned to negative growth from 0.4% to -0.1% due to consumer credits of public banks. Total credits’ 13-week annualized trend fell from 25.6% to 24.5%.

At the end of July, the European Banking Authority (EBA) published the results of its stress test on European banks. The aim of these tests is to assess the resilience of the institutions in the event of a severe recession scenario.