They are not passing on the banks' interest rates

Bank interest rates should fall to reduce the cost of credit. After all, the fruits must be reaped.

The fall in the Selic rate should have led banks to reduce the number of customers due to the reduction in funding costs.

This Wednesday, the Central Bank announced that banks have not yet passed on the benefits to customers.

With a drop of 5.5% per year, the basic interest rates in the economy were among the lowest in history. In fact, the cost of credit should fall.

To explain this, we need to understand how it works in practice.

Due to lower interest rates, fixed income investments are not as attractive. However, the cost of credit should fall to stimulate consumption and, therefore, stimulate economic growth.

Of course, this only works in practice if creditors lower the banks' interest rates. About 40% of Brazilians have outstanding debts. And what does this mean? That they should reduce interest rates.

Paying off debts involves other factors, not just the reduction of the Selic rate. Unemployment rates are the same, as are financial fraud and default. It is a system in which one individual pays for another.

The fees cover the banks' costs. And the rest? The rest is profit. Many times, the entrepreneur cannot produce enough pay off your debts. Therefore, an ordinary worker cannot pay off nothing.

The clipping

Payment of resources intended for customer acquisition fell by just 1.1 percentage points per year.

However, the average interest rate banks charge on loans fell by around 0.6 percentage points per year.

The free credit segment, as loans personal and financing reports that the difference between the cost of money and the interest charged increased from 31.1p.p to 31.6p.p.

With bank interest rates averaging 37.9% per year, this category remains stable.

Node credit Overall, the cut was more than 350 billion in August. The free segment was the one that grew the most.

In some lines, bank interest rates have increased. Including revolving credit on credit cards. The rate rose from 299.08% to 307.2% per year.

The overdraft facility fell from an average of 318.7% annually to 306.9% in August. However, financial institutions passed on the declines in the long term.

You loans for individuals has been the country's main growth factor.

The continued cuts in the Selic rate caused the rate to fall from 14.25% annually to 5.5%. Free credit increased by around 2.4% overall.

Vehicle financing increased by around 15.5% and duplicate invoice discounts increased by 10%.

Itau Unibanco

THE Itau bank announced in this arrow (27), a reduction in real estate credit.

Now, the minimum interest rate is 7.45% and will come into effect from October 1st. In fact, the bank leads among private banks in granting real estate credit and savings.

The real estate market is growing continuously, which is very important for the population. Making dreams come true, establishing long-term relationships and reviving the sector.