Banking
From The Report: Peru 2012
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As banks in the US and Europe faced buyouts and nationalisation, Peru’s banking sector held firm in the wake of the financial crisis. With a sound regulatory body, hefty capital reserves and limited exposure to complex financial instruments, no Peruvian banks were forced to close their doors. The country currently has 15 banks and 59 financial institutions, including 34 microfinance institutions, and increasing bank penetration throughout the country is a priority for the sector. Growth in lending rates and deposits have indicated that more people are taking advantage of the country’s banking services and overcoming historical distrust in banking institutions. Further retail operations are likely to remain the focus in the years to come, as the sector continues its expansion.

This chapter includes an interview with Julio Velarde, President, Central Reserve Bank of Peru; and a roundtable discussion with Eduardo Torres-Llosa, CEO, BBVA Continental; José Antonio Blanco Cáceres, CEO, Citibank; Luis Felipe Castellanos, CEO, Interbank; and Carlos González-Taboada, CEO, Scotiabank.

Articles from this Chapter

Overview

Ready to grow: Sector stakeholders work together to increase penetration
OBG
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In 2008 Peru, like most other economies at that time, suffered an abrupt slowdown. GDP growth dropped from 9.8% in 2008 to 0.8% in 2009, according to World Bank data. The banking sector, which had been on the rise since 2003, was also affected as credit growth sputtered. However, as banks in the US and Europe faced buyouts and nationalisation, Peru’s banking sector held firm. With a sound regulatory body, hefty capital reserves and very limited exposure to complex financial instruments, not…

Overview

Ready to grow: Sector stakeholders work together to increase penetration
OBG
plus

In 2008 Peru, like most other economies at that time, suffered an abrupt slowdown. GDP growth dropped from 9.8% in 2008 to 0.8% in 2009, according to World Bank data. The banking sector, which had been on the rise since 2003, was also affected as credit growth sputtered. However, as banks in the US and Europe faced buyouts and nationalisation, Peru’s banking sector held firm. With a sound regulatory body, hefty capital reserves and very limited exposure to complex financial instruments, not…

Analysis

Reaching out: A growing middle class presents new opportunities
OBG
plus

Significant growth has been achieved in the banking sector over the last several years as more and more low- and middle-income Peruvians gained access to an increasing number of financial products specifically tailored to suit their needs and incomes. According to statistics published by the Superintendency of Banking, Insurance and Private Pension Funds ( Superintendencia de Banca Seguros y AFP, SBS), bank lending to the private sector jumped 16.6% year-on-year (y-o-y) in January 2012. Much…

Analysis

Reaching out: A growing middle class presents new opportunities
OBG
plus

Significant growth has been achieved in the banking sector over the last several years as more and more low- and middle-income Peruvians gained access to an increasing number of financial products specifically tailored to suit their needs and incomes. According to statistics published by the Superintendency of Banking, Insurance and Private Pension Funds ( Superintendencia de Banca Seguros y AFP, SBS), bank lending to the private sector jumped 16.6% year-on-year (y-o-y) in January 2012. Much…

Interview

With the curve: OBG talks to Julio Velarde, President, Central Reserve Bank of Peru
OBG
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Interview: Julio Velarde With high levels of economic growth, what measures are planned to keep inflation under control? JULIO VELARDE: The Peruvian economy grew 6.9% in 2011 and is expected to expand about 5.7% in 2012. At present, we are not seeing demand pressure given that the economy is growing at capacity. Headline inflation was high in 2011 due to temporary supply shocks from commodity price fluctuation in the first half of the year and the impact of La Niña during the second half that…

Interview

With the curve: OBG talks to Julio Velarde, President, Central Reserve Bank of Peru
OBG
plus

Interview: Julio Velarde With high levels of economic growth, what measures are planned to keep inflation under control? JULIO VELARDE: The Peruvian economy grew 6.9% in 2011 and is expected to expand about 5.7% in 2012. At present, we are not seeing demand pressure given that the economy is growing at capacity. Headline inflation was high in 2011 due to temporary supply shocks from commodity price fluctuation in the first half of the year and the impact of La Niña during the second half that…

Analysis

At the top: Microfinance is high on the agenda for the nation’s biggest banks
OBG
plus

Given impressive growth figures and high profit margins, a number of international banks have expressed their interest in entering the domestic market. For the moment, however, the country’s banking sector is a consolidated one. While there are 15 banks, a significant majority of the sector’s assets are held by the “big four”, which together account for 80% of assets. BANCO DE CRÉDITO DEL PERÚ: Banco de Crédito del Perú (BCP) is the largest bank in the country. With $25bn in assets, BCP holds a 35% share of the market. A subsidiary of Peruvian financial holding company Credicorp, BCP is a full-service bank with retail and corporate…

Analysis

At the top: Microfinance is high on the agenda for the nation’s biggest banks
OBG
plus

Given impressive growth figures and high profit margins, a number of international banks have expressed their interest in entering the domestic market. For the moment, however, the country’s banking sector is a consolidated one. While there are 15 banks, a significant majority of the sector’s assets are held by the “big four”, which together account for 80% of assets. BANCO DE CRÉDITO DEL PERÚ: Banco de Crédito del Perú (BCP) is the largest bank in the country. With $25bn in assets, BCP holds a 35% share of the market. A subsidiary of Peruvian financial holding company Credicorp, BCP is a full-service bank with retail and corporate…

Interview

OBG talks to Eduardo Torres-Llosa, CEO, BBVA Continental; José Antonio Blanco Cáceres, CEO, Citibank; Luis Felipe Castellanos, CEO, Interbank; and Carlos González-Taboada, CEO, Scotiabank
OBG
plus

Interview: Eduardo Torres-Llosa,José Antonio Blanco Cáceres,Luis Felipe Castellanos,Carlos González-Taboada Is further regulation needed to protect the financial industry from external problems? CARLOS GONZÁLEZ-TABOADA: The financial system was in a very complex situation after 2000. Capitalisation levels were low and portfolio/asset quality was a point of concern. Therefore, private entities and regulators spent a decade taking initiatives to support the quality, liquidity…

Analysis

Bringing services to the people: Many opportunities exist for microfinance institutions
OBG
plus

In 2011 Peru came top in the Economist’s Global Ranking for Microfinance Business Environment for a third year running. This can be attributed to the sector’s high level of sophistication resulting from 30 years of history in the country. Microfinance institutions also benefit from a strong regulatory framework outlined and enforced by the Superintendency of Banks, Insurance and Private Pension Fund Administrators of Peru ( Superintendencia de Banca, Seguros y AFP, SBS). TOP PLAYERS: The…

Analysis

Bringing services to the people: Many opportunities exist for microfinance institutions
OBG
plus

In 2011 Peru came top in the Economist’s Global Ranking for Microfinance Business Environment for a third year running. This can be attributed to the sector’s high level of sophistication resulting from 30 years of history in the country. Microfinance institutions also benefit from a strong regulatory framework outlined and enforced by the Superintendency of Banks, Insurance and Private Pension Fund Administrators of Peru ( Superintendencia de Banca, Seguros y AFP, SBS). TOP PLAYERS: The…