The doubt of investors and other financial specialists is whether or not there is a credit crisis. Especially because the R$ 20 billion shortfall of Americanas brought more impacts to the economy than expected, mainly to the credit market.
The domino effect had a direct impact on banks, as Itaú Unibanco (ITUB4), Bradesco (BBDC4) and Santander (SANB11) showed large drops in their profits.
The moment of the credit crisis is when banks become much more demanding when it comes to granting credit. This means that without money circulating, companies put a brake on investments and families postpone consumption.
And all Brazil doesn’t need is another crisis, let alone a credit crisis, don’t you think? Charts made by Inter Research with data from the Central Bank, show the first signs that there really might be a problem in the market.
See the four charts below:
In addition, Inter points out that the latest data from the BC for January 2023 report an early slowdown in credit concessions for legal entities. While delinquency is well below the historical average, evidencing the downward trend for the year.
“If in the banking market credit entered a restrictive mode, in the capital market we are also seeing a strong deceleration trend in issuances in the last two months, with more restricted demand from investors. With spreads still high and companies’ greater indebtedness, the scenario should continue to be challenging”, he adds.
‘Credit crunch’: what is this crisis in the market?
The term in English is used precisely to designate credit crises. It’s as if the credit market slowed down, impacting everything around it, like families and companies that need resources to finance themselves.
The phenomenon can happen due to an unexpected risk, such as a liquidity constraint in which creditors stop lending. Thus, no one can acquire credit in the market to meet their payments and objectives.
In addition, another consequence is that loan renewals also become more difficult, giving more strength to the bankruptcy of companies in a more sensitive financial situation.
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