Daniel Girola, vice president-senior analyst, and Ceres Lisboa, associate managing director, both in the Financial Institutions Group for Latin America at Moody’s Ratings: “The measure to expand payroll-deductible loans for private-sector workers aims to stimulate economic activity by providing banks with well-structured and secured consumer loans that have high business potential. While this product is expected to offer lower interest rates compared to unsecured personal loans—which could help alleviate existing debt burdens—this measure comes at a time of high interest rates and inflationary pressures that are likely to continue affecting borrowers’ repayment capacity. We expect both large incumbent banks and digital banks to leverage their customer bases to offer the new product. In particular, digital banks that currently have minimal or nonexistent shares in private payroll loans due to a lack of relationships with large companies will find greater growth potential in the new centralized model. Penetration into the large, addressable market of private-company employees is likely to happen gradually as banks refine their credit models and…”
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Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.
Ernesto Armenteros
Vice Chairman
of the Board,
Banco de Ahorro y Credito Union
Michael Diaz
Partner,
Diaz, Reus & Targ, LLP
Desiree Green
Vice President,
Int’l Gov’t Affairs,
Prudential Financial
Earl Jarrett
Deputy Chairman & CEO
The Jamaica National Group
Barbara Kotschwar
Professor of Political Economy,
Georgetown University
Thomas Morante
Partner,
Pierson Ferdinand
Manuel Orozco
Senior Fellow,
Inter-American Dialogue
Adalberto Palma Gómez
Senior Partner,
Aperture SC
Rodolfo Pittaluga
Adjunct Professor,
Florida International University
College of Law
Roberto Teixeira da Costa
Founder & Board Member Emeritus, CEBRI
Mario Trujillo
CEO,
DolEx Dollar Express
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