Deposits and loans dropped in 2015

Image: El Universo

Banking is one of the sectors that have felt the effects of the downturn in the economy. This has been noticed in the evolution of deposits and credit delivery, according to Julio Jose Prado, president of the Association of Private Banks.

Banking is one of the sectors that has felt the effects of the downturn in the economy. This has been noticed in the evolution of deposits and credit delivery, according to Julio Jose Prado, president of the Association of Private Banks.

Prado explains that “the loss of momentum of the economy both public and private” makes deposits fall.

He adds that “the government invests less and is behind in payments to suppliers, this also shrinks the liquidity that enters the financial system.”

However, he says that the main reason for the decline in deposits is the withdrawal “of money from companies of all sizes that due to the fall in sales are using their savings to have working capital.”
Source: http://www.eluniverso.com/noticias/2015/12/31/nota/5321332/depositos-creditos-cayeron-2015