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CREDIT BUREAUS PLEAD WITH THE GOVERNMENT TO STIMULATE LENDING IN THE COUNTRY

Source: http://broadcast.com.br/ | By Matheus Piovesana

São Paulo, 27/02/2023 - In a letter sent to the government of President Luiz Inácio Lula da Silva (PT), the credit bureau sector defended the stimulation of credit in the country, as well as the stimulation of sustainable credit, entrepreneurship and also the balance of public accounts. The document was drawn up by National Association of Credit Bureaus (ANBC), to which companies such as Boa Vista, Serasa Experian, Quod and SPC, among others, are linked.

The letter, released on Monday, February 27, is dated February 7 of this year. Since then, both the government and the financial market have begun to discuss the possibility that the country is close to a credit crisis, built on high interest rates and the slowdown in the economy. As Broadcast on Friday 24th, banks and the government have been discussing the issue and possible ways out.

"The bureau sector believes that the new government should persist in stimulating credit, which is still underutilized in the country," the letter states. The organization cites figures from the World Bank which, in 2020, showed that domestic credit to the private sector amounted to 70% of Brazil's GDP, while in Chile it was 124% of GDP, and in the United States, 216%.

ANBC says that there is still room for progress, but that in order to achieve this, it is necessary to ensure that the market operates with "broad, clear and accurate" information. In this regard, it highlights regulatory reforms by the Central Bank, which have led to the creation of tools such as Pix and Open Finance. He also highlights the Cadastro Positivo, operated by the bureaus.

According to the letter, the Register has around 142 million people registered, both individuals and companies, and has given more than 22 million new consumers access to credit. The text also cites data from the Central Bank from 2021, which shows that there was a 10.4% reduction in the interest rate on personal loans in the first two years the Register was in force.

On the other hand, according to ANBCAccording to the organization, the existence of millions of defaulters is a challenge for the country and the federal government. The organization says that bureaus have invested in financial education to help reduce these numbers, based on more conscious consumer behavior.

Contact: matheus.piovesana@estadao.com