In the 6th fall in a row, bank interest rates fall to 41.8% per year in November

[ad_1]

Movement occurs amid the reduction of the Selic rate by the Central Bank. According to the BC, this is the lowest level since September 2022. The average interest rate charged by banks in operations with individuals and companies fell from 42.6% to 41.8% per year from October to November last year, informed the Central Bank this Thursday (4). This was the sixth consecutive drop in banks’ average interest rates, which took the rate to its lowest level since September 2022 (40.5% per year). The interest was calculated based on free resources – that is, it does not include the housing and rural sectors and the National Bank for Economic and Social Development (BNDES). The decline in the bank rate comes after the Central Bank began reducing the economy’s basic interest rate, the Selic, in August 2023. Currently, the Selic rate is at 11.75% per year after four consecutive cuts. The average interest rate charged on operations with companies fell from 22.8% per year in October to 22.2% per year in November. This is the lowest level since May 2022 (21.8% per year). In operations with individuals, interest rates fell from 56.1% per year in October to 54.9% per year in November. It is the lowest level since September 2022 (53.8% per year). For individuals’ special checks, the rate rose from 131.4% per year in October to 132.7% per year in November. Bank credit The total volume of bank credit in the market, according to the Central Bank, increased by 0.9% in November, to R$5.66 trillion. In October, it totaled R$5.6 trillion. In the month before last, there was growth of 0.8% in loans to companies, to R$2.2 trillion, and an expansion of 0.9% in credit operations for individuals – to R$3.45 trillion, he added the institution. For individuals, the BC reported that the increase in October was mainly due to cash credit card operations, vehicle purchases and payroll loans for INSS retirees and pensioners. See how the new revolving credit card interest rule works Family debt and default According to the BC, family debt amounted to 47.6% of accumulated income in the 12 months up to October of this year, compared to 47.7% that had were registered in August. This is the lowest level since September 2021 (47.5%). The BC’s historical series for this indicator began in January 2005. In February 2020, before the Covid-19 pandemic, household debt totaled 41.8%. The federal government launched the “Desenrola” program in July 2023 to renegotiate the population’s debts. It remains valid until March this year. Until the beginning of December last year, the program made it possible to renegotiate R$29 billion in debts owed by 10.7 million people. At the same time, the average default rate recorded by banks in credit operations fell from 3.5% in October to 3.4% in November this year. This is the lowest level since March of this year, when it totaled 3.3%. The BC series for this indicator starts in March 2011. In operations with individuals, default fell from 3.9% in October to 3.8% in November. It is the lowest level since September 2022 (3.7%). Corporate default rates, however, rose from 2.8% in October to 2.9% in November. This is the highest level since May 2018, when it was 3%.

[ad_2]

Source link