Banks lend 21% more money so far in 2022, microcredits are the fastest growing

In January and February 2022, the dynamism in the placement of loans that occurred during 2021 was maintained. In these first two months of the year, private banking reported $4,482 million in new loans, an increase of 21%.

This means that so far this year, $785 million in additional credit have entered the economy in relation to January and February 2021, according to the latest data reported by the Central Bank of Ecuador (BCE) and provided by the Association of Banks of Ecuador (Asobanca).

74% of the amount of new credits was allocated to the productive sectors, that is to say that seven out of every ten dollars of credit were allocated to this sector. 26% went to consumption.

Credit and housing reserves were reactivated in 2021 and expectations are good for 2022

Within credit for the productive sectors, the microcredit segment was the one that grew the most during the first two months of the year. Microloans reached $396 million between January and February, a 50% increase or an additional $132 million when compared to the same period in 2021.

The number of operations also remains on the rise. Between January and February 2022, private banks placed 1.1 million new credit operations; this means that banks granted 73,138 additional credit operations compared to the period from January to February 2021 (an increase of 7%), indicates Asobanca.

More than 40% of the IESS unsecured loan money is now used to cover health expenses

The union also indicates that of the total credit granted by private financial sector entities, banks placed 73% of the credit, cooperatives placed 26% and mutuals 1%.

This two years after the start of the COVID-19 pandemic, in which private banking ensures that it is solid and that it continues to leverage economic recovery through the placement of loans that contribute to the recovery of production, generation of employment and reactivation of consumption in the country. (I)