SGDB No. 002/2014: Survey on Credit Market Conditions

EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA

La Paz, January 16, 2014 SGDB No. 002/2014

FROM: GENERAL MANAGEMENT FINANCIAL ENTITIES MANAGEMENT TO: FINANCIAL ENTITIES SUBJECT: SURVEY ON CREDIT MARKET CONDITIONS

Ladies and Gentlemen:

We are sending the reference survey corresponding to the fourth quarter of 2013 for completion by the chief executive of the credit area of your institution. We would appreciate the submission of the form to the Central Bank of Bolivia no later than Thursday, January 23, 2014. Any inquiries will be handled by Lic. Marco Belmonte at phone 2664942 or email mbelmonte@bcb.gob.bo.

Sincerely.

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Survey on Credit Market Conditions

This survey aims to collect qualitative information on financial institutions' perceptions regarding the evolution of factors affecting the credit market. It is directed at the chief executives of the area responsible for loan origination.

A. General Data

Institution: ................................................................................................................................................................... Name of the person responding: ........................................................................................................................ Position: ........................................................................................................................................................................... Phone: ....................................................................... Fax: ....................................................................................... Email: ...........................................................................................................................................................................

Instructions

1. This survey consists of a set of statements that must be marked with the alternative that best reflects the respondent's opinion.
2. The evaluation of each statement must be compared with the results of the similar quarter of the previous fiscal year.
3. In the "other reasons" or "others" option, the corresponding reason or item must be specified in the form.
4. The present form includes options corresponding to consumer loans in questions C.7.1, C.7.2, D.7.1, D.7.2, and E.

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Approval Standards

B. In the fourth quarter of fiscal year 2013, the standards for loan approval were:

B.1 Corporate (If not applicable, go to point B.2)	B.2 SME (If not applicable, go to point B.3)	B.3 Microcredit (If not applicable, go to point B.4)
[ ] More restrictive [ ] Similar [ ] Less restrictive	[ ] More restrictive [ ] Similar [ ] Less restrictive	[ ] More restrictive [ ] Similar [ ] Less restrictive

B.4. If you selected "more restrictive," go to question B.4.1 for the corresponding credit type. If you selected "less restrictive," go to question B.4.2 for the corresponding credit type.

B.4.1 If approval standards were "more restrictive," prioritize the factors explaining these changes (1 most important, 5 least important)

Factors	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)
Deterioration in companies' payment capacity.	[ ]	[ ]	[ ]
Deterioration of the value of presented collateral	[ ]	[ ]	[ ]
Deterioration of the institution's funding conditions	[ ]	[ ]	[ ]
Institution's preference for other types of loans or assets	[ ]	[ ]	[ ]
Other reasons:	[ ]	[ ]	[ ]

B.4.2 If approval standards were "less restrictive," prioritize the factors explaining these changes (1 most important, 5 least important)

Factors	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)
Improvement in companies' payment capacity.	[ ]	[ ]	[ ]
Increase in the value of presented collateral	[ ]	[ ]	[ ]
Better funding conditions for the institution	[ ]	[ ]	[ ]
Institution's preference for this type of credit relative to other types of loans or assets	[ ]	[ ]	[ ]
Other reasons:	[ ]	[ ]	[ ]

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Approval Standards

B. In the fourth quarter of fiscal year 2013, the standards for loan approval were:

B.5 Residential Mortgage (If not applicable, go to point B.6)	B.6 Consumer (If not applicable, go to point B.7)
[ ] More restrictive [ ] Similar [ ] Less restrictive	[ ] More restrictive [ ] Similar [ ] Less restrictive

B.7. If you selected "more restrictive," go to question B.7.1 for the corresponding credit type. If you selected "less restrictive," go to question B.7.2 for the corresponding credit type.

B.7.1 If approval standards were "more restrictive," prioritize the factors explaining these changes (1 most important, 5 least important)

Factors	Residential Mortgage (Prioritization)	Consumer (Prioritization)
Deterioration in households' payment capacity.	[ ]	[ ]
Deterioration of the value of presented collateral	[ ]	[ ]
Deterioration of the institution's funding conditions	[ ]	[ ]
Institution's preference for other types of loans or assets	[ ]	[ ]
Other reasons:	[ ]	[ ]

B.7.2 If approval standards were "less restrictive," prioritize the factors explaining these changes (1 most important, 5 least important)

Factors	Residential Mortgage (Prioritization)	Consumer (Prioritization)
Improvement in households' payment capacity.	[ ]	[ ]
Increase in the value of presented collateral	[ ]	[ ]
Better funding conditions for the institution	[ ]	[ ]
Institution's preference for this type of credit relative to other types of loans or assets	[ ]	[ ]
Other reasons:	[ ]	[ ]

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Loan Applications (Demand)

C. In the fourth quarter of fiscal year 2013, loan applications (demand) behaved as follows:

C.1 Corporate (If not applicable, go to point C.2)	C.2 SME (If not applicable, go to point C.3)	C.3 Microcredit (If not applicable, go to point C.4)
[ ] Increased [ ] Remained stable [ ] Decreased	[ ] Increased [ ] Remained stable [ ] Decreased	[ ] Increased [ ] Remained stable [ ] Decreased

C.4. If you selected "increased," go to question C.4.1 for the corresponding credit type. If you selected "decreased," go to question C.4.2 for the corresponding credit type.

C.4.1 If "increased," prioritize the loan purposes that influenced this behavior (1 most important, 5 least important)

Factors	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)
Increase in working capital needs	[ ]	[ ]	[ ]
Increase in investment capital needs	[ ]	[ ]	[ ]
Increase in fixed asset replacement needs	[ ]	[ ]	[ ]
Higher applications for purchasing debt from other financial entities	[ ]	[ ]	[ ]
Other: ...	[ ]	[ ]	[ ]

C.4.2 If "decreased," prioritize the loan purposes that influenced this behavior (1 most important, 5 least important)

Factors	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)
Decrease in working capital needs	[ ]	[ ]	[ ]
Decrease in investment capital needs	[ ]	[ ]	[ ]
Decrease in fixed asset replacement needs	[ ]	[ ]	[ ]
Lower applications for purchasing debt from other financial entities	[ ]	[ ]	[ ]
Other:	[ ]	[ ]	[ ]

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Loan Applications (Demand)

C. In the fourth quarter of fiscal year 2013, loan applications (demand) behaved as follows:

C.5 Residential Mortgage (If not applicable, go to point C.6)	C.6 Consumer (If not applicable, go to point C.7)
[ ] Increased [ ] Remained stable [ ] Decreased	[ ] Increased [ ] Remained stable [ ] Decreased

C.7. If you selected "increased," go to question C.7.1 for the corresponding credit type; if you selected "decreased," go to question C.7.2 for the corresponding credit type.

C.7.1 If applications for residential mortgage loans "increased," prioritize the loan purposes that influenced this behavior (1 most important, 5 least important).

Factors	Residential Mortgage (Prioritization)
Housing construction	[ ]
Housing acquisition	[ ]
Housing renovation	[ ]
Higher applications for purchasing debt from other financial entities	[ ]
Other:.....	[ ]

C.7.1 If applications for consumer loans "increased," prioritize the loan purposes that influenced this behavior (1 most important, 5 least important).

Factors	Consumer (Prioritization)
Purchase of new vehicle	[ ]
Purchase of used vehicle	[ ]
Housing anticrético	[ ]
Housing renovation / Improvement	[ ]
Other (specify):	[ ]

C.7.2 If applications for residential mortgage loans "decreased," prioritize the loan purposes that influenced this behavior (1 most important, 5 least important).

Factors	Residential Mortgage (Prioritization)
Housing construction	[ ]
Housing acquisition	[ ]
Housing renovation	[ ]
Lower applications for purchasing debt from other financial entities	[ ]
Other:.....	[ ]

C.7.2 If applications for consumer loans "decreased," prioritize the loan purposes that influenced this behavior (1 most important, 5 least important).

Factors	Consumer (Prioritization)
Purchase of new vehicle	[ ]
Purchase of used vehicle	[ ]
Housing anticrético	[ ]
Housing renovation / Improvement	[ ]
Other (specify):	[ ]

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Loan Approvals

D. In the fourth quarter of fiscal year 2013, loan approvals behaved as follows:

D.1 Corporate (If not applicable, go to point D.2)	D.2 SME (If not applicable, go to point D.3)	D.3 Microcredit (If not applicable, go to point D.4)
[ ] Increased [ ] Remained stable [ ] Decreased	[ ] Increased [ ] Remained stable [ ] Decreased	[ ] Increased [ ] Remained stable [ ] Decreased

D.4. If you selected "increased," go to question D.4.1 for the corresponding credit type. If you selected "decreased," go to question D.4.2 for the corresponding credit type.

D.4.1 If "increased," prioritize the loan purposes that influenced this behavior (1 most important, 5 least important)

Factors	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)
Increase in working capital needs	[ ]	[ ]	[ ]
Increase in investment capital needs	[ ]	[ ]	[ ]
Increase in fixed asset replacement needs	[ ]	[ ]	[ ]
Higher approvals for purchasing debt from other financial entities	[ ]	[ ]	[ ]
Other: ...	[ ]	[ ]	[ ]

D.4.2 If "decreased," prioritize the loan purposes that influenced this behavior (1 most important, 5 least important)

Factors	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)
Decrease in working capital needs	[ ]	[ ]	[ ]
Decrease in investment capital needs	[ ]	[ ]	[ ]
Decrease in fixed asset replacement needs	[ ]	[ ]	[ ]
Lower approvals for purchasing debt from other financial entities	[ ]	[ ]	[ ]
Other: ...	[ ]	[ ]	[ ]

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Loan Approvals

D. In the fourth quarter of fiscal year 2013, loan approvals behaved as follows:

D.5 Residential Mortgage (If not applicable, go to point D.6)	D.6 Consumer (If not applicable, go to point D.7)
[ ] Increased [ ] Remained stable [ ] Decreased	[ ] Increased [ ] Remained stable [ ] Decreased

D.7. If you selected "increased," go to question D.7.1 for the corresponding credit type; if you selected "decreased," go to question D.7.2 for the corresponding credit type.

D.7.1 If approvals for residential mortgage loans "increased," prioritize the loan purposes that influenced this behavior (1 most important, 5 least important).

Factors	Residential Mortgage (Prioritization)
Housing construction	[ ]
Housing acquisition	[ ]
Housing renovation	[ ]
Higher applications for purchasing debt from other financial entities	[ ]
Other:.....	[ ]

D.7.1 If approvals for consumer loans "increased," prioritize the loan purposes that influenced this behavior (1 most important, 5 least important).

Factors	Consumer (Prioritization)
Purchase of new vehicle	[ ]
Purchase of used vehicle	[ ]
Housing anticrético	[ ]
Housing renovation / Improvement	[ ]
Other (specify):	[ ]

D.7.2 If approvals for residential mortgage loans "decreased," prioritize the loan purposes that influenced this behavior (1 most important, 5 least important).

Factors	Residential Mortgage (Prioritization)
Housing construction	[ ]
Housing acquisition	[ ]
Housing renovation	[ ]
Lower applications for purchasing debt from other financial entities	[ ]
Other:.....	[ ]

D.7.2 If approvals for consumer loans "decreased," prioritize the loan purposes that influenced this behavior (1 most important, 5 least important).

Factors	Consumer (Prioritization)
Purchase of new vehicle	[ ]
Purchase of used vehicle	[ ]
Housing anticrético	[ ]
Housing renovation / Improvement	[ ]
Other (specify):	[ ]

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Rejection of Credit Applications

E. Prioritize the most important reasons why credit applications were not approved during the fourth quarter of 2013 (1 most important, 5 least important):

Reasons	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)	Residential Mortgage (Prioritization)	Consumer (Prioritization)
Insufficient level of collateral	[ ]	[ ]	[ ]	[ ]	[ ]
Insufficient income projection to meet debt payments	[ ]	[ ]	[ ]	[ ]	[ ]
Insufficient information on repayment sources and credit history	[ ]	[ ]	[ ]	[ ]	[ ]
Inadequate client credit record	[ ]	[ ]	[ ]	[ ]	[ ]
Other (specify):	[ ]	[ ]	[ ]	[ ]	[ ]

Funding Sources

F.1 In the fourth quarter of fiscal year 2013, the financing of your institution's credit portfolio by funding type behaved as follows:

	Substantially Increased	Increased	Remained Stable	Decreased	Substantially Decreased	Not Applicable
Public deposits	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Domestic financing lines for productive loans.	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Domestic financing lines for housing provision.	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
External financing lines for productive loans.	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Other sources:...	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]

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F.2 In the fourth quarter of fiscal year 2013, the average financial cost of funding sources behaved as follows:

	Substantially Increased	Increased	Remained Stable	Decreased	Substantially Decreased	Not Applicable
Public deposits	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Domestic financing lines for productive loans.	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Domestic financing lines for housing provision.	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
External financing lines for productive loans.	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Other sources:...	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]

Expectations

G. For the next quarter, it is expected that loans will behave as follows relative to the similar quarter of the previous fiscal year:

G.1 Corporate (If not applicable, go to point G.2)	G.2 SME (If not applicable, go to point G.3)	G.3 Microcredit (If not applicable, go to point G.4)
[ ] Increase [ ] Remain stable [ ] Decrease	[ ] Increase [ ] Remain stable [ ] Decrease	[ ] Increase [ ] Remain stable [ ] Decrease

G.4 Residential Mortgage (If not applicable, go to point G.5)	G.5 Consumer (If not applicable, go to point G.6)
[ ] Increase [ ] Remain stable [ ] Decrease	[ ] Increase [ ] Remain stable [ ] Decrease

G.6. Indicate the three main reasons justifying your answer to the previous questions for each credit type, listing them in order of importance (1 the most important reason).

Corporate	SME	Microcredit
1.	1.	1.
2.	2.	2.
3.	3.	3.

Residential Mortgage	Consumer
1.	1.
2.	2.
3.	3.

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H. For the next quarter, it is expected that loans to the productive sector will behave as follows relative to the similar quarter of the previous fiscal year:

	H.1 Corporate (If not applicable, go to point H.2)	H.2 SME (If not applicable, go to point H.3)	H.3 Microcredit
	Increase / Remain stable / Decrease	Increase / Remain stable / Decrease	Increase / Remain stable / Decrease
Agroindustry and/or rural sector	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]
Manufacturing industry	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]
Construction	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]
Other (specify):	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]