Loan Default Rate At State Banks "Normal"
Despite Financial Crisis
The amount of bank loans in arrears more
than 90 days or judicial recovery continues
on the increase, last month setting a record
of 2.21%, up from 2.18% in June, on average,
according to the statistics of the
Superintendencia General de Entidades
Financieras (Sugef).
The banking regulator considers the
situation "normal" as long as the default
rate stays below 3%, despite the increases.
Although the averages is well below the 3%
level set by the Sugef, the state bank,
Banco Nacional, is battling with the problem
as its default rate in July reached 3.21%.
That level could hurt the overall rating by
all institutions, raising the indicator
level used by the Sugef, which begins to
raise the alert to "level 1" when the
indicator climbs over 3% but below 10%;
"level 2" when the indicator is between 10%
and 15%; and "level 3" when the indicator is
above 15%.
The increase will force banks with high
levels to re-evaluate their reserve
position, increasing their reserves due to
the bad debts.
Juan Carlos Corrales, general manager of the
Banco Nacional, said that despite the rise
in unemployment, reduction in production and
lower economic growth, the default situation
is manageable.
At the Banco de Costa Rica, the other state
bank, general manager Mario Rivera, says
that the morosity rate has maintained
relatively low despite the world economic
crisis.
Guillermo Quesada, general manager of
Bancrédito, Costa Rica's third national
bank, described the default situation at the
bank as "normal".
All three bank managers gave their
declarations on the state of their bank to
the Spanish language daily, La Nación, on
August 6.
The Sugef says it expects the default rate
for August to increase but not out of
control.
|
|
|
|
|
| |
|
|
|
|
|
