Javier poggi

225 views

Published on

inPERU Road Show London 2012

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
225
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Javier poggi

  1. 1. Peruvian Financial System:Liquidity & Solvency to sustain growthJavier PoggiChief Economist,Superintendence of Banks, Insurance Companies andPension Funds Administrators (SBS)
  2. 2. Agenda1. Very positive financial stability outlookwithin a strict regulatory framework2. Good prospects for growth andbusiness opportunities
  3. 3. 1. Very positive financial stability outlookwithin a strict regulatory framework
  4. 4. Banking institutions represent almost 90%of total assets of the Financial System(US$ 85 billion in assets)Assets as of 29 February 2012Number ofinstitutionsAssets(US$ Million)Size(%)Banking Institutions 15 75 447 89,0Finance Companies 10 3 149 3,7Microfinance Institutions 34 6 205 7,3Municipal Non-Banking Institutions 13 4 711 5,6Rural Non-Banking Institutions 11 1 024 1,2Micro & Small Enterprise Development Entities 10 470 0,6FINANCIAL SYSTEM 59 84 801 100
  5. 5. Financial System Regulatory EnvironmentSame regulatory framework for allsupervised institutionsBalance between qualitative riskmanagement requirements and basic rules(provisions, capital, liquidity ratios, etc)
  6. 6. Financial System Regulatory EnvironmentBasel II fully implemented and adapted to localconditions:Parameters recalibrated to reflect local riskenvironment (i.e. stricter)Addressed relevant local risks:Foreign exchange induced credit riskOver indebtedness
  7. 7. Financial System Regulatory EnvironmentSignificant implementation of Basel III framework:Countercyclical capital requirements (alsocountercyclical provisioning)Capital surcharges for systemic institutionsAdditional buffer (Peruvian version ofconservation buffer: Interest rate risk forbanking book and individual, sectoral andgeographic credit risk concentration)Liquidity standards  Under public consultation
  8. 8. Some Banking System Indicators
  9. 9. Banking System: Liquid assets / short - term liabilities(%)0816243240485664Feb-09Apr-09Jun-09Aug-09Oct-09Dec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Domestic Currency Foreign CurrencyMinimum Ratio (Foreign currency)Minimum Ratio (Domestic currency)Liquidity of the Banking System largelyexceeds the minimum requirement43,147,8
  10. 10. Banking System shows good quality of assets:1.6% of non performing loansBanking System: Loan quality indicators(as a percentage of total loans)0,00,51,01,52,02,5Feb-09Apr-09Jun-09Aug-09Oct-09Dec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Past - due loans Refinanced and restructured loans
  11. 11. Banking System holds a 36% buffer on top ofrequired loan provisionsBanking System: Coverage Indicators(%)100130160190220250280Feb-09Apr-09Jun-09Aug-09Oct-09Dec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Provisions / Past-due loansProvisions / Past-due, refinanced and restructured loansBanking System: Provisions(US$ Million)9011 1231 349 1 40926612818423924718320226402004006008001 0001 2001 4001 6001 8002 000Aug-2009 Dec-2010 Dec-2011 Feb-2012Required provisions Cyclical provisions Voluntary provisions
  12. 12. Banking System: Capital ratio(%)78910111213141516Feb-09Apr-09Jun-09Aug-09Oct-09Dec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12BankingLawInternational StandardBanking System holds 33% of capital buffer13,5210,08,0Banking System: Capital(US$ Million)3 4274 2545 476 5 5211 4321 6621 849 1 94201 0002 0003 0004 0005 0006 0007 0008 000Dec-2009 Dec-2010 Dec-2011 Feb-2012Regulatory capital Capital bufferTier 1 Capital: 78% of regulatory capital
  13. 13. Large buffers of loan provisions and capitalwould allow banks to remain solvent under astressed adverse scenarioVariablesStressscenarioGDP Peru (YoY %) 0,50Inflation (%) 4,52Unemployment (%) 11,50Copper price (US$/lb) 125,00Fishmeal Price (US$/MT) 800,00Exchange rate (PEN/US$) 2,72EMBIG Latin America (bps) 650,00GDP China (YoY %) 5,50GDP US (YoY %) -1,00Banking SystemMinimumregulatory capitalrequirement02468101214Banking System13,5%11,7%Current capital ratioCapital ratio after stress
  14. 14. Profitability of the Banking System remains highBanking System: Annualized ROE and ROA(%)24,292,35 2,3424,5905101520253035ROE ROAFeb-2011Feb-2012
  15. 15. 2. Good outlook for growth andbusiness opportunities
  16. 16. Retail banking will continue to grow,creating business opportunities During the lastdecade, retailloans haveincreased, onaverage, 20%annually Mortgage loansrepresent lessthan 4% of GDP3 1503 5084 023 4 2444 5985 01518,320,122,723,625,127,0Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11N°debtors (in thousands) N°debtors / Adults (%)
  17. 17. Peru is the world leader in Microfinance,being regarded as the best microfinance businessenvironment according to The Economist It is estimated thatonly 40% of microentrepreneurs arefunded by theFinancial System394459 5086107458981 0931 1901 3551 510Dec-02Dec-03Dec-04Dec-05Dec-06Dec-07Dec-08Dec-09Dec-10Dec-11Financial System: Numberof Micro Enterprise Debtors(In thousands)
  18. 18. Large infrastructure deficit in the country opensinteresting opportunities for both investment andprovision of financial servicesMain sectorsTransport (roads, railroads, airports, ports)EnergyTelecomWaterAgricultureTourism
  19. 19. We expect the Financial System will continuegrowing around 15% per year-10,0-5,0-5,010,015,020,025,030,035,040,0Feb-02Aug-02Feb-03Aug-03Feb-04Aug-04Feb-05Aug-05Feb-06Aug-06Feb-07Aug-07Feb-08Aug-08Feb-09Aug-09Feb-10Aug-10Feb-11Aug-11Feb-12Loans of Financial System(Annual Growth %)
  20. 20. ThanksFor detailed information about thePeruvian Financial SystemVisitWWW.SBS.GOB.PE

×