Consumer loans registered a higher percentage of non-performing loans.
The Association of Private Banks of Ecuador (Asobanca) announced that September became the month with the highest delinquency since the pandemic began.
According to the entity, it would be the largest increase in monthly and annual relation. The default rate for September is 4.1%; that is, an increase of 1.1 percentage points compared to August and 1.1 percentage points compared to September 2019.
In March of this year, delinquency levels in private banks reached 2.9%.
For the union, in September the highest delinquency was recorded by consumer credit, with a rate of 6.74%. While, in September 2019, the delinquency of the consumer portfolio reached 4.96%.
Meanwhile, housing credit reported the largest increase compared to last year. In September 2019, the delinquency rate was 3.24% and in September 2020 it reached 5.26%.
According to Asobanca, this increase occurred because the state of emergency ended and Resolutions No. 569-2020-F and No. 582-2020-F of the Monetary and Financial Policy and Regulation Board ended the validity of They allowed extraordinary credit deferrals given the economic situation that impacted various sectors.
Asobanca said that, to face the deterioration of bad debts, banks have built provisions for several months, to ensure that the coverage of their past due portfolio is broad.
Currently, bank coverage is 184%, this means that the bank’s provisions against non-performing portfolio are 1.8 times higher.