The general manager of the Pichincha Bank, Fernando Pozo, explains that the fall in oil prices has led to a massive withdrawal of deposits, which has resulted, collaterally, in a decrease in the loan portfolio. However, he says, the bank has a prudent policy of appropriate provisioning to just protect the environment risks, both credit as liquidity.
In an interview with Daily Expreso, he said that until September the decline in deposits was 6.30% (about 1,600 million) compared with September 2014, a relevant period given the seasonality presented in December.
He explained that the Pichincha Bank has restricted the placement of the loan portfolio to maintain an adequate level of liquidity because the bank’s main objective is the protection of customer deposits. “Today, before the opening of the Government to eliminate the tax on foreign exchange outflows for external financing, the bank is negotiating new credit lines from abroad, which would help to lessen the affectation of credit in the fourth quarter.”