Banks recognize they're expanding lending faster than BCRP would like

Friday, March 25, 2011

Peru's banks recognize that the rate of credit expansion they are experiencing continues to be beyond what central bank BCRP sees as acceptable for meeting its inflationary target.

"The central bank hasn't been able to cool off lending as much as it would like," banking association Asbanc president Óscar Rivera said, according to a report in local newspaper Gestión.

BCRP has said it would like to see lending at below 20%, but through the end of February, lending to the private sector showed no signs of slowing, accelerating to annual growth of 19.3%.

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Several of Peru's larger banks remain at odds with the BCRP's stated goals, indicating that they expect their portfolios to expand by more than 20% in 2011.