Peruvian banking association Asbanc said the degree of competition in the country's financial system is high, as reflected in a decline in the interest rates of banks' credit segments,
Research conducted by Asbanc's economic studies area revealed that the four main banks in the country — Banco de Crédito del Perú, BBVA Banco Continental SA, Scotiabank Perú SAA and Banco Internacional del Perú SAA — have a greater presence in corporate loans, large companies, medium-sized companies, consumer loans and mortgages.
For loans to small companies, the largest share is held by Mibanco Banco de la Microempresa SA, Banco de Crédito del Perú, Scotiabank Perú and Caja Municipal de Ahorro y Credito de Arequipa SA. For microenterprise loans, half of the share is concentrated between Mibanco, Caja Municipal de Arequipa, Compartamos Financiera SA and Caja Municipal de Ahorro y Crédito de Huancayo SA, the study noted.
Asbanc also saw a general decline in interest rates among different loan types in the last five years. Specifically, the average interest rates in corporate loans decreased to 4.03% from 6.05% while yields of loans to large companies fell to 6.23% from 7.01%.
Meanwhile, an observed increase in the cost of financing is driven by a greater push from financial institutions for inclusion, especially catering to those hailing from medium and low economic sectors, Asbanc said.
The study is in response to a recent statement from the International Monetary Fund that warned against a high concentration within the Peruvian banking system and a high dollarization of the country's economy.