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Consumer Debt (Personal Credit, Mortgage, and Credit Card) and the Economy


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Panama credit card debt at $1.88 billion.

Posted on November 25, 2016 in Panama

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CREDIT CARD debt in  Panama reached   $1.88 billion in August  up  $170 million from January reports  The Consumer Protection Authority (ACADECO)

Black Friday and the Christmas shopping frenzy will ensure a further steep rise.

Currently, 28 banks offer  credit cards,  to customers.

http://www.newsroompanama.com/news/panama/panama-credit-card-debt-1-88-billion

Edited by Moderator_02
edited title to make it a bit more general
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Consumer and mortgage sector boost credit in Panama Banking Center

Wed, 07/18/2018 - 20:19

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Domestic credit to the private sector increased by 5.2%, with the consumer and mortgage sectors maintaining the credit dynamic at the International Banking Center of Panama (CBI), according to the Banking Activity Report corresponding to April disclosed today.

According to this report, published by the Superintendency of Banks of Panama (SBP), the sectors that drive this higher growth are associated with the products of people banking, especially in the personal loan sectors (9.9%) and mortgage (7.6%).

The increase in interim construction financing shows that to date, disbursements continue to be generated in the commercial construction and development projects of the residential building market.

By April, the industrial sector, on the other hand, contributed 525 million dollars to the increase in private loans compared to the same period last year, being the third activity with the highest contribution.

The granting of credit in different industrial sub-sectors such as steel and construction materials increased by 58%; food, beverages and tobacco 28%; and the production and generation of electricity by 25%.

The report also highlights that residential mortgage credit continues to be one of the loans that maintain a growing demand, with a growth of 7.6% for the end of April.

For the period covered by this report, the balance of mortgage loans granted totaled 16,329 million, with an expansion of 1,160 million compared to the same period last year, while consumer loans continued to grow at a sustained rate of 9.9%

One of the most dynamic consumer segments was the car loan-oriented segment, which grew 3.7% in April 2018 compared to the same month last year, as well as loans granted by credit card that showed significant figures by having a growth of 10.3%.

In terms of the quality of the CBI's portfolio, the Banking Activity Report for the month shows that defaulting is 3.3% of the total portfolio, which in its defaulter component represents 1.7% and the portfolio expired 1.6%

The CBI, which includes almost 90 general and international license banks, closed last April "with a total of assets of 118,666 million dollars," according to another report released by the SBP on July 13.

The profits of the International Banking Center of Panama totaled 1,797 million dollars at the end of 2017, with a "record" growth of 17.9% compared to the previous year, according to data from the Superintendency.

Panama's economy grew by 5.4% of gross domestic product (GDP) in 2017, over 5% in the previous year, and is expected to do so this year at around 4.5%.

 

http://www.panamatoday.com/economy/consumer-and-mortgage-sector-boost-credit-panama-banking-center-7358

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Panama: Credit to the Private Sector Continues to Rise

Mortgages and personal loans explained much of the 6% increase in domestic credit to the private sector, recorded between May 2017 and the same month in 2018.

Tuesday, August 7, 2018

According to the latest report by the Superintendency of Banks, in the fifth month of the year, the private sector's credit portfolio totaled $52.167 billion, which is equivalent to an increase of 5.9% compared to the $49.277 billion reported up to May 2017. 

Residential mortgages continue to be one types of loans that is maintaining growth in demand. Up to the end of May, these loans had 7.5% growth. For the period covered by this report, the balance of mortgage loans granted totaled US $16.431 billion, registering an expansion of US $1.150 billion with respect to the same period last year, the document details.

Consumer loans continued to grow at a sustained rate of 9.5%. One of the most dynamic segments was the car loan-oriented segment, which grew 3.3% in May 2018 compared to the same month last year. Similarly, loans granted by credit cards also showed significant figures, growing by 10%.

See the full report. (In Spanish)

 

https://www.centralamericadata.com/en/article/main/Panama_Credit_to_the_Private_Sector_Continues_to_Rise

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Panama: Loan Portfolio Up 2%

Up to July 2019, the credit portfolio of the banks of the national system totaled $54.328 million, 2% more than what was reported in the same month of 2018, a rise that is explained by mortgage and personal loans.

Thursday, October 31, 2019

Total domestic credit increased by 2% compared to the same period in 2018. The sectors driving this higher growth in absolute value are associated with personal banking products, especially in the mortgage (5.2%) and personal loans (5.6%), informed the Superintendency of Banks of Panama.

The official report states that "... It is worth noting that the industry sector presented a 1.7% reduction, which responds to a company in that sector, canceled loans and sought financing through the international market.

Mortgage credit continues to show positive signs for banks, registering a 5.2% growth compared to July 2018. This is equivalent to an increase of USD 866 million and maintains it as one of the activities of greater contribution within the local credit sector.

The residential sector recorded a balance of USD 15.427 million, a 6.7% year-on-year growth, which shows the importance of homeownership by the Panamanian.

The domestic portfolio of consumer credit (credit cards, personal loans and vehicle loans) represents 23% of the balance of the Local Private portfolio so it is also a fundamental part of credit growth with 5.6%, or about USD 652 million in absolute values.
"

See full report.

 

https://www.centralamericadata.com/en/article/main/Panama_Loan_Portfolio_Up_2

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Panama: Loan Portfolio Still Rising

As of August 2019, the credit portfolio of the banks of the national system totaled $54,805 million, 2% more than what was reported in the same month of 2018, a rise that is explained by mortgage and personal loans.

Monday, December 9, 2019

Total domestic credit increased by 2.1% compared to the same period in 2018. The sectors driving this higher growth in absolute value are associated with personal banking products, especially in the mortgage (5%) and personal loans (5.8%) sectors, informed the Superintendence of Banks of Panama.

The document explains that "... Mortgage credit continues to show positive signs for banks, registering a 5.2% growth compared to August 2018. This is equivalent to a USD 825 million increase and maintains it as one of the activities with the greatest contribution within the local credit sector.

The domestic portfolio of consumer credit (credit cards, personal loans and vehicle loans) represents 22.8% of the balance of the Local Private portfolio so it is also a fundamental part of credit growth with 5.8%, or about USD 681 million in absolute values.

The commercial sector maintains the trend of recent months, which is affected by wholesale credits given in free zone and show an 8.3% reduction up to August. However, excluding these loans in August 2019 wholesale loans would grow by 1.7% and commercial activity in turn USD 41 million than reported in 2018. On the other hand, the retail component grew 0.2%.
"

See full report (in Spanish).

 

https://www.centralamericadata.com/en/article/main/Panama_Loan_Portfolio_Still_Rising

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Credit Downwards: What Factors Affect Them?

Suspension of contracts, uncertainty about the economic future and reduction of salaries, are some of the factors that have affected the banks in Panama to place fewer loans in this context of health crisis.

Thursday, August 13, 2020

The amount of new loans granted by Panamanian banks was $589 million during May this year, a 26% reduction compared to what was reported in April 2020. This fall is explained by the economic crisis, which derives from the restrictions decreed due to the outbreak of covid-19.

The Superintendence of Banks reported that in May 2020, although some segments have shown positive variations, as a result of previous management, in general terms all segments have shown decreases.

See "Financial Services: Business Potential in Central America"

Giovanna Cardelicchio, manager of the Panamanian Credit Association (APC), told Prensa.com that "... in January 2019 there were 32,152 new loans, while in the same month of 2020 there were 33,433, but in May there were only 3,809. The suspension of contracts, the reduction in salaries, among other factors generated by the pandemic, are having an impact on banks."

Cardelicchio added that "... at the end of June, personal loans financed by banks totaled more than 540,078 for a total of 6.766 billion dollars granted and in financial or other institutions totaled 396,000 credits for more than 2.358 million."

Also see "Credits: Potential Market in the Region"

Reports from CentralAmericaData state that at the end of the first half of the year in Panama, more than 1.6 million people were looking for a financial service on the Internet. Of this group of consumers, approximately 14% are exploring options to acquire a credit card.

https://www.centralamericadata.com/en/article/main/Credit_Downwards_What_Factors_Affect_Them

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