Febraban survey points to loan growth slowdown this year, 2012

Wednesday, March 16, 2011

Brazilian economists see loan growth slowing down to 18% for February this year, and to 17.4% for the same month in 2012, according to a survey published by local banking association Febraban.

Lending grew 20.3% in January compared with the same month last year, according to the latest figures from central bank BCB.

Brazil's economy expanded at an impressive 7.5% last year, but this year the government expects GDP growth to slow down to 4-4.5%, which will reduce demand for loans.

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The survey also forecast that the non-performing loan (NPL) ratio would improve to 4.5% in February and be at the same level in February 2012. The NPL ratio was 4.6% in January.

To read the full survey in Portuguese, go to this link