With the rise in interest rates Bank of the Republic from September 2021 as a formula against inflation, the cost of credit has begun to become more expensive, but in the case of the resources that the clients of the financial entities bring them in the form of savings or investment, they also rebound.
In addition, this transmission of the central bank’s monetary policy rate to public resources is influenced not only by this natural factor, but also by the new capital protection requirements made by the international regulation of Basel III.
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And it is that in the midst of the normalization of monetary policy, in the credit channel the banks implement said agreement, which has generated competition for resources, especially in terms of more than one year, which has caused that by capturing longer term have to raise CDT rates.
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In April 2021, the monetary policy interest rate was at historical lows, standing at 1.75% and for last April, which corresponds to the analysis period, reached 5%, that is, an increase of 325 basic points, according to the Financial Laboratory of the Jorge Tadeo Lozano University.
According to figures from the Financial Superintendence, the weighted average increase in one-year CDT deposit rates for banks is 616 basis points, which means that the market has overreacted or anticipated the Issuer’s movements.
Regarding the rate differential, no relevant changes are observed, that is, when the Issuer’s interest rate was 1.75%, the banks’ weighted average rate reached 2.66%, that is, 91 basis points per above. At the moment, this same spread is 116 basis points, when calculating the difference between 6.16%, which is the weighted rate, minus 5%, which was the reference rate for April.
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In short, according to Edgar Jiménez, from the Financial Laboratory, what is observed is a “sustained increase in deposit interest rates for 360-day CDTs, which in many cases exceeds expectations and is explained by fears of higher levels of inflation. It is very likely that this behavior will continue until at least July, which would eventually be an optimal point to open CDT”.
SAVINGS, TOO
But just as we are seeing a good time for those who have liquidity and are looking for simple and easy investment options such as CDTs, savings accounts, an instrument of immediate availability for the client, also is registering moderately attractive interest rates, which is not very common.
In general terms, during the last year there has been a generalized increase by banks in the interest rates that remunerate deposits in savings accounts. Although it is true that these rates have usually turned out to be too low, the current situation has shown that some entities have decided to significantly improve this amount.
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According to him Financial Laboratory of the Jorge Tadeo Lozano University, When comparing the rates of a year ago with the current ones, Banco Itaú improves by going from 1.04% EA to 3.41% EA, ranking as one of the entities that recognizes a better yield on deposits.
In general terms, it is concluded that the transmission of monetary policy decisions added to fears about increases in the cost of living continue to explain the strong competition between banking entities for the capture of resources. At the same time, citizens benefit from the resources to maintain deposits or traditional low-risk investments.
BRIEFCASE
