The balance of the credit portfolio of the municipal savings banks has quadrupled since December 2010, since the amount reached S/ 7,884 million and in June 2022 it amounted to S/ 30,580 million. In the same period of time, the number of clients has increased from 859,290 to 2 million 013,378 nationwide, according to the Peruvian Federation of Municipal Savings and Credit Banks (FEPCMAC).
This evolution demonstrates the importance of this entity in the financial system, especially for micro and small businesses (mypes) representing 98% of companies operating in Peru. In this way, of mype credit at the level of the entire financial system, the municipal savings banks have a 36.1% share.
For this reason, Jorge Solis, president of the FEPCMAC, considers that it is necessary to create measures that allow the savings banks to be more competitive, since since their creation they have had certain limitations.
“By strengthening the municipal savings banks, we give greater impetus to financial inclusion, and this, in turn, is a tool to lift people out of poverty. This is recognized by the United Nations, the G20 group, among others. In addition, 70% of employment in the world is generated by mypes and they contribute to 50% of the world’s GDP,” Solis highlighted.
On September 1, the plenary session of Congress approved in the first vote the rule that strengthens the municipal savings and credit banks to promote competition for the benefit of consumers.
Among the benefits that the enactment of this rule could entail is that it will allow the entry of strategic partners, such as multilateral organizations, to strengthen the assets of these financial entities; with which with each sol that is contributed to a financial institution, the leverage is 7 to 10 times more.
“If a partner joins with S/ 1,000 million, with this patrimonial support the box could lend between S/ 7,000 million and S/ 10,000 million. So there is a need to strengthen the assets of the savings banks so that they can continue to grow,” explained Solis.
Another benefit that the rule would allow is to expand their operations, so they will be able to issue Credit cards, debit cards, checking accounts, overdraft and cashier’s checks; since by not having these products, the clients of the savings banks had to seek to satisfy their needs in other entities, which shortens the competitive capacity of the savings banks.
“We had mypes clients who, if they wanted a cashier’s check, had to go to a bank, so we shared our clients, this was a limitation. With regard to current accounts, it is not true that they are no longer in use, today there are 2 million 241,000 checking accounts and they are managed by banks and private entities, the balance accumulated by these accounts represents a quarter of the total of all operations in the financial system,” explained the FEPCMAC representative.
In addition, these entities are also definitively excluded from the State administrative financial system.
Finally, it should be noted that the proposal must go through a second vote in plenary so that it can then be officially published in the newspaper El Peruano.