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Asbanc: Loan default rate for Peru's private banks ticks higher in October

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Asbanc: Loan default rate for Peru's private banks ticks higher in October

Loans granted by private banks in Peru totaled about 240.21 billion Peruvian soles at the end of October, local banking association Asbanc said, rising from 238.61 billion soles in the previous month.

Wholesale loans represented 57.63% of the October total, while retail loans accounted for the remaining 42.37%.

In a separate statement, the association said the delinquency rate for the private banking sector's loan portfolio reached 3.14% in October, rising by 6 basis points from the previous month and up by 19 basis points compared to a year earlier.

The rise is the default rate for October was mainly due to a higher nonperforming loan ratio for credits to micro, small and medium-sized enterprises, Asbanc noted.

"Despite the behavior observed in October, the bank default rate was below the peak of 3.15% recorded in May 2017, showing relative stability in the last five months," the banking association said.

As of Nov. 24, US$1 was equivalent to 3.24 Peruvian soles.