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UPDATE 1-Brazil bank lending slips in August on drop in corporate loans
September 27, 2017 / 2:44 PM / in a month

UPDATE 1-Brazil bank lending slips in August on drop in corporate loans

(Adds data)

BRASILIA, Sept 27 (Reuters) - Bank lending in Brazil fell for a second straight month in August as a drop in corporate loans outweighed the increase in credits granted to individuals, the central bank said on Wednesday.

It said outstanding bank loans slipped 0.1 percent from previous month to 3.047 trillion reais ($954.33 billion), dragged down by a decline in corporate lending of 1 percent.

Bank loans to individuals grew by 0.7 percent.

For the third straight month, loans in arrears for at least 90 days remained at 5.6 percent of non-earmarked, outstanding credit, the bank said.

The report adds to evidence that business investments are lagging the growth in consumer-driven demand as Brazil struggles to emerge from a deep, two-year long recession.

In the 12-month period through August, outstanding corporate loans dropped 8.8 percent, reflecting the impact of protracted debt restructurings. Loans to individuals grew 4.6 percent in the same period.

Lending spreads fell to 36.9 percent in August from 37.6 percent in July.

The spreads measure the difference between the interest rate that banks charge on their loans and their cost of funding.

$1 = 3.1928 reais Reporting by Marcela Ayres; Writing by Silvio Cascione; Editing by Chizu Nomiyama and W Simon

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