Banking
From The Report: Peru 2017
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Peru’s banking system is widely seen as one of the most stable and well regulated in Latin America. One of main the banking sector stories in 2017 is how this solid services industry will adapt to Peru’s gradual transition from average annual growth rates of 7-8% during the commodity boom to a more moderate medium-term average growth rate, with the economy expected to stabilise at around 4-5%. Successive governments have sought to deepen the country’s financial markets, increase the proportion of the population that has access to banking services, and address the wider issue of financial inclusion and poverty reduction.

This chapter contains interviews with Julio Velarde, Governor, Central Reserve Bank of Peru, and Miguel Uccelli, CEO and Country Head, Scotiabank Peru.

Articles from this Chapter

Overview

A sound system: The sector remains strong and liquid, with the emphasis shifting to loan growth
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Peru’s banking system is widely seen as one of the most stable and well regulated in Latin America. At one level the main banking sector story in 2017 is how this essentially solid services industry will adapt to Peru’s gradual transition from annual growth rates of 7-8% during the commodity boom to a more moderate medium-term average growth rate, with the economy expected to stabilise at around 4-5%. There is indeed every indication that Peru’s banks will be able to adapt to this…

Interview

Working to rebound: Julio Velarde, Governor, Central Reserve Bank of Peru, on addressing negative trends and working towards future growth
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Interview:Julio Velarde How important is it for the country’s economic recovery to guarantee the execution of public and private investment projects? JULIO VELARDE: GDP growth was 3.3% in 2015 and came close to 4% in 2016. Consumption growth has remained robust and exports are expanding at a faster rate, as the mining industry – mainly cooper projects – significantly increased Peru’s export capacity. The decrease in private investment is largely explained by the fall in mining investment,…

Analysis

Fintech revolution: Advancing technology offers easy banking options
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In early 2016 Peru launched a new mobile payments system called billetera móvil (mobile wallet) or BIM. While there have been numerous mobile payment systems introduced around the world, frequently as rival alliances between competing telecoms and banking players, this particular project stands out for being a collaborative venture between three telecommunications companies and 32 of Peru’s banks and financial institutions. “What makes Peru different is that pretty much all of the major…

Interview

Banking on it: Miguel Uccelli, CEO and Country Head, Scotiabank Peru, on developing financial products and increasing economic inclusion
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Interview:Miguel Uccelli What type of products, instruments and channels could help enhance financial inclusion? MIGUEL UCCELLI: Several products, services and channels play a significant role in increasing financial inclusion levels. In regards to products, one must take into account that there are only 240,000 mortgages in Peru for a country of more than 30m people, representing less than 6% of the country’s GDP. Since 2003 the country has experienced unparalleled economic and social…

Analysis

A line of growth: Increasing financing options for small and medium-sized enterprises remains a priority
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Since it took office in July 2016, the government has said that developing small and medium-sized enterprises (SMEs) is a key part of its economic strategy. Officials have noted that SMEs account for a large proportion of employment, but that their performance in terms of growth and productivity has been at best mixed. Many SMEs have experienced sluggish sales. Stimulating them to grow more vigorously and become more competitive is seen as something which would have a significant positive…