Moody’s mentioned that the Unifin case is the third event of default in the last three years, after the default of Royal Credit in this year and Alpha Credit in 2021.
The breaches of these firms evidenced, according to the rating agency, fragilities in the segment of unregulated institutions in addition to showing weak corporate governance compared to traditional banking.
“Unifin’s default will not affect the financial stability of the country because the participation of non-bank financial institutions represents less than 5% of the entire system until last June,” Moody’s detailed.
Despite this, 18 banks were exposed to Unifin through secured and unsecured loan products amounting to more than 1,000 million pesos.
