Financial sector increased 6.5% between January-May 2022

Financial sector increased 6.5% between January-May 2022

Financial intermediation activities exhibited a year-on-year variation of 6.5% between January-May 2022, influenced by the year-on-year expansion of 14.2% of credit granted to the private sector at the end of May 2022, equivalent to an absolute increase of 188,233 million of pesos channeled through financial intermediation entities, reported yesterday the central bank.

The institution published its monthly economic activity report (IMAE) in which the development of the financial sectorafter the monetary entity ordered, in March of last year, the release of resources from the Legal Lace in national currency for an amount of 30,133.4 million pesos, equivalent to 2.7% of the required coefficient, and in foreign currency for an amount of 222.4 million dollars, equivalent to 2.5%, as a way of channeling new loans to different productive sectors and households affected by the COVID-19 pandemic.

The resources of Legal Lace are used by the central bank as an instrument of monetary policy to increase or decrease liquidity in the economy in special circumstances, thereby encouraging consumption and investment to boost the economy.

In this sense, the regulatory entity indicated that the provision of resources to the financial system to be channeled to productive agents through loans at a maximum interest rate of 8%, fixed at three years, continues to contribute through the mechanism of transmission to the good performance of economic activities in the construction, commerce, manufacturing and micro, small and medium-sized enterprises (MSMEs) sectors.

With funding to financial sectorit is reflected that the economic activity of the private sector is playing a leading role in the performance of the economy as a whole, pointed out the central bank in its economic report for January-March 2022.

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