Standard & Poor’s Global (S&P) expects Brazilian banks to significantly raise credit granting in 2019, given the greater economic growth prospects. The international rating agency forecasts a 10% expansion in the total credit portfolio next year. As for 2018, S&P anticipates a growth between 4% to 6%, after years of contraction.

If this scenario is confirmed, the total credit ratio to GDP will rise to 47% in 2018 and 49%. The NPL ratio (for non-performing loans over 90 days), for its hand, should continue to gradually fall over the next two years, receding from the 3% level recorded in September. The Banks’ asset quality is expected to continue to improve and there should be a further moderation within the loan renegotiation levels, states S&P.

The credit growth should continue be headed by private banking institutions.

Original Story: Valor Económico | Sérgio Tauhat
Translation & Edition:Prime Yield