Crisis, the Bank in Latin America in fact Lucky
Credit & Loan August 2nd, 2010
MEXICO – The rating of Standard & Poor’s expresses the banks in Latin America will benefit in the second quarter. In fact, the economic crisis has made banks dependence on deposits than loans disbursed.
As reported by the AFP, Tuesday (13/10/2009), most banks in Latin America will end the period (second quarter) with a profit. Despite the fact that economic activity declined and the economic growth is still berfluktuatif.
“The banks are considered, we do not see a problem in the banking system, as seen in the United States, Europe, and Asia,” said analyst Standard & Poor’s Angelica Bala.
For your information, the banks in Latin America to escape from the liquidity crisis because they do not have such a sophisticated operation of credit derivative instruments.
The private credit sector in Latin America represents an average of 20 percent of GDP, compared to approximately 80 percent of Spain’s economy, and approximately 100 percent in the United States (U.S.). However, banks in Latin America experienced more severe decline in activity between 2009 and 2010 than the U.S..
While the capitalization and liquidity of banks in Brazil, which is the region’s largest economy, will help cushion the impact of reduction in assets and investments.
According to the UN Economic Commission for Latin America and the Caribbean (ECLAC), Latin American economies expected to fall 1.9 percent this year, despite positive signs at the end of the year could result in shrinking 1.5 percent as a whole.
