The average interest rate on free and earmarked credit dropped slightly last month, but maintains the upward trend in 12 months, according to the Monetary and Credit Statistics released today (27) by the Central Bank (BC). The rate reached 28.6% per year in September, a reduction of 0.2 percentage points in the month and an increase of 7 percentage points in 12 months.
The rise in average bank interest rates comes at a time when the economy’s basic interest rate, the Selic, is at its highest level since January 2017, at 13.75% per year. Yesterday (26), the Monetary Policy Committee (Copom) decided to maintain the Selic rate at the same level.
That was the Monday consecutive time that the BC does not change the rate, which has remained at that level since August. Previously, the Copom had raised the Selic rate for 12 consecutive times, in a cycle of monetary tightening that began amid rising food, energy and fuel prices. The Selic is the main instrument used by the BC to achieve the inflation target.
The entity assesses that the rise in the Selic rate has been passed on to the final rates of different types of credit and does not rule out the possibility of further increases if inflation does not fall as expected. The increase in the basic rate helps to control inflation because it affects prices, since higher interest rates make credit more expensive and stimulate savings, containing heated demand.
In free credit for families, the average interest rate reached 53.7% per year, with a decrease of 0.3 percentage points in relation to August and an increase of 12.5 percentage points in 12 months. In contracts with companies, the free rate rose 0.2 percentage point in the month and grew 5.9 percentage points in 12 months, reaching 22.9% per year.
For individuals, the highlight of the month was the overdraft, with an increase of 6.2 percentage points in september and 5 percentage points in 12 months, going to 134.6% per year. Payroll-deductible loans increased 0.3 percentage points in the month and 6.4 percentage points in 12 months (25.4%). On the other hand, interest on non-consigned personal credit fell 3.7 percentage points in the month of September and increased by 4.3 percentage points in 12 months (81.7% per year).
Credit card
Credit card fees rose 0.8 percentage points in the month and 25.2 percentage points in 12 months, reaching 88.5% per year. In revolving credit, which is the one taken by the consumer when he pays less than the full amount of the card bill and lasts 30 days, there was a drop of 10.9 percentage points in September and an increase of 50 percentage points in 12 months, going to 388, 7% per year. After 30 days, financial institutions pay the debt in installments. In the case of the installment card, interest fell 1.9 percentage points in the month and rose 16.2 percentage points in 12 months, to 184.9% per year.
In free credit to companies, there was an increase of 0.7 percentage points in the month and an increase of 5.5 percentage points in 12 months in working capital, reaching 23.1% per year. Already in the overdraft, interest rose 2.4 percentage points in September and fell 9.2 percentage points in 12 months, going to 325.7% per year. Check cashing operations increased by 0.7 percentage point in interest in September and increased by 9.7 percentage points in 12 months (38.5%).
Rates for financing imports fell by 4.8 percentage points in september and 5,6 percentage points in 12 months, to 6.9% per year. Finally, the credit card had an increase of 1.1 percentage points in interest for the month and an increase of 11 percentage points in 12 months, to 32.1% per year.
directed credit
These rates are for free credit, in which banks have the autonomy to lend money raised in the market and set the interest rates charged to customers. Directed credit, which has rules defined by the government, is basically intended for the housing, rural, infrastructure and microcredit sectors.
In the case of earmarked credit, the average rate for individuals was 10.7% per year in September, a positive variation of 0.1 percentage point month and an increase of 3.3 percentage points in 12 months. For companies, the rate rose 0.3 percentage point in the month and varied 0.1 percentage point down in 12 months, going to 9.4% per year.
Increase in hiring
Even with the maintenance of high interest rates, in September, the stock of all loans granted by the banks of the National Financial System (SFN) was R$ 5.176 trillion, an increase of 2.2% in relation to August, which reflected, basically, increases of 2.6% in the balance of credit operations agreed with legal entities (R$ 2.109 trillion) and of 1.9% in that of individuals (R$ 3.067 trillion). The portfolio’s 12-month growth reached 16.8% last month. The credit balance corresponded to 55% of the Gross Domestic Product (GDP), which is the sum of all the goods and services that the country produces.
Expanded credit to the non-financial sector, which is credit available to companies, families and governments regardless of the source (banking, bond market or external debt) reached R$ 14.479 trillion, growing 1.5% in the month and 10.7% in 12 months.
Household indebtedness
According to the BC, delinquency (considering delays of more than 90 days) has remained stable for a long time, with small fluctuations, and registered 2.8% in September. In free credit operations for individuals, it is at 5.7% and for companies at 1.9%.
Household indebtedness, the ratio between the balance of debts and income accumulated in 12 months, stood at 52.9 in August, at record levels that reflect the increase in lending. There was a drop of 0.4% in the month and an increase of 3.5% in 12 months. With the exclusion of real estate financing, which takes a considerable amount of income, it stood at 33.5% in the month of August.
The commitment of income, the ratio between the average amount for payment of debts and the average income calculated in the period, was 29.4% in August, a growth of 0.8% in the month and 3.9% in 12 months, a record of the series started in January 2005. For these last data, there is a greater lag in the month of disclosure, as the Central Bank depends on data presented by the Brazilian Institute of Geography and Statistics (IBG
