SGDB No. 020/2014: Survey on Credit Market Conditions

B.C.B. / DGD-VUC
2014 JUL -9 PM 1: 14
GENERAL CORRESPONDENCE

EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA

La Paz, July 7, 2014
SGDB No. 020/2014

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

Ladies and Gentlemen:

We are sending the referenced survey corresponding to the second quarter of 2014 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 Friday, July 18, 2014. Any inquiries will be attended to by Lic. Marco Belmonte at phone 2664921 or email mbelmonte@bcb.gob.bo.

Sincerely.

WPP/MMV/MAAM/OID/MBF
Adj.: As indicated

Ayacucho y Mercado • Tel: (591-2) 2409090 • P.O. Box: 3118 www.bcb.gob.bo • bcb@bcb.gob.bo • La Paz-Bolivia

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Survey on Credit Market Conditions

This survey aims to collect qualitative information on the perception of financial entities regarding the evolution of factors affecting the credit market. It is directed to 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 management year, with the exception of the items corresponding to social interest housing loans.
3. In the "other reasons" or "others" option, the corresponding reason or item must be specified in the form.
4. Questions I, J, K, L, and M regarding social interest housing credit have been incorporated into this form.

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Approval Standards

B. In the second quarter of the 2014 management year, 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 type of credit. If you selected "less restrictive," go to question B.4.2 for the corresponding type of credit.

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

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

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

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

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Approval Standards

B. In the second quarter of the 2014 management year, the standards for loan approval were:

B.5 Housing excluding social interest housing credits (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 type of credit. If you selected "less restrictive," go to question B.7.2 for the corresponding type of credit.

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

Factors	Housing excluding social interest housing credits (Prioritization)	Consumer (Prioritization)
Deterioration in households' payment capacity	[ ]	[ ]
Deterioration of the value of presented guarantees	[ ]	[ ]
Deterioration of the institution's funding conditions	[ ]	[ ]
Institution's preference for other types of credits or assets	[ ]	[ ]
Other reasons:	[ ]	[ ]

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

Factors	Housing excluding social interest housing credits (Prioritization)	Consumer (Prioritization)
Improvement in households' payment capacity	[ ]	[ ]
Increase in the value of presented guarantees	[ ]	[ ]
Better funding conditions for the institution	[ ]	[ ]
Institution's preference for this type of credit relative to other types of credits or assets	[ ]	[ ]
Other reasons:	[ ]	[ ]

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Loan Applications (Demand)

C. In the second quarter of the 2014 management year, 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 type of credit. If you selected "decreased," go to question C.4.2 for the corresponding type of credit.

C.4.1 If "increased," prioritize the loan purposes that influenced this behavior (1 most important and 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 and 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 second quarter of the 2014 management year, loan applications (demand) behaved as follows:

C.5 Housing excluding social interest housing credits (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 type of credit; if you selected "decreased," go to question C.7.2 for the corresponding type of credit.

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

Factors	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 and 4 least important).

Factors	Prioritization
Purchase of new vehicle	[ ]
Purchase of used vehicle	[ ]
Purchase of household items	[ ]
Other (specify):	[ ]

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

Factors	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 and 4 least important).

Factors	Prioritization
Purchase of new vehicle	[ ]
Purchase of used vehicle	[ ]
Purchase of household items	[ ]
Other (specify):	[ ]

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Loan Approvals

D. In the second quarter of the 2014 management year, 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 type of credit. If you selected "decreased," go to question D.4.2 for the corresponding type of credit.

D.4.1 If "increased," prioritize the loan purposes that influenced this behavior (1 most important and 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 and 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 second quarter of the 2014 management year, loan approvals behaved as follows:

D.5 Housing excluding social interest housing credits (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 type of credit; if you selected "decreased," go to question D.7.2 for the corresponding type of credit.

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

Factors	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 and 4 least important).

Factors	Prioritization
Purchase of new vehicle	[ ]
Purchase of used vehicle	[ ]
Purchase of household items	[ ]
Other (specify):	[ ]

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

Factors	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 and 4 least important).

Factors	Prioritization
Purchase of new vehicle	[ ]
Purchase of used vehicle	[ ]
Purchase of household items	[ ]
Other (specify):	[ ]

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Rejection of Credit Applications

E. Prioritize the most important reasons why credit applications were not approved during the second quarter of 2014 (1 most important and 5 least important):

Reasons	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)	Housing (excluding social interest housing credits) (Prioritization)	Consumer (Prioritization)
Insufficient level of guarantees	[ ]	[ ]	[ ]	[ ]	[ ]
Insufficient income projection to meet debt payments	[ ]	[ ]	[ ]	[ ]	[ ]
Insufficient information on repayment sources and credit history	[ ]	[ ]	[ ]	[ ]	[ ]
Inadequate credit record of the client	[ ]	[ ]	[ ]	[ ]	[ ]
Other (specify):	[ ]	[ ]	[ ]	[ ]	[ ]

Funding Sources

F.1 In the second quarter of the 2014 management year, 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 funding lines for productive lending	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Domestic funding lines for housing provision	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
External funding lines for productive lending	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Other sources:...	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]

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F.2 In the second quarter of the 2014 management year, the average financial cost of funding sources behaved as follows:

	Substantially Increased	Increased	Remained Stable	Decreased	Substantially Decreased	Not Applicable
Public Deposits	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Domestic funding lines for productive lending	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Domestic funding lines for housing provision	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
External funding lines for productive lending	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]
Other sources:...	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]

Expectations

G. For the next quarter, it is expected that credits will behave as follows relative to the similar quarter of the previous management 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 Housing excluding social interest housing credits (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 type of credit, listing them in order of importance (1 the most important reason).

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

Housing excluding social interest housing credits	Consumer
1.	1.
2.	2.
3.	3.

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H. For the next quarter, it is expected that credits to the productive sector will behave as follows relative to the similar quarter of the previous management 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):	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]

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Social Interest Housing Credit - Loan Applications (Demand)

I. In the second quarter of the 2014 management year, applications for loans destined for social interest housing behaved as follows relative to the previous quarter:

I.1 Social Interest Housing Credit
[ ] Increased [ ] Remained stable [ ] Decreased

I.2 If you selected "increased," go to question I.2.1; if you selected "decreased," go to question I.2.2.

I.2.1 If applications for social interest housing loans "increased," prioritize the loan purposes that influenced this behavior (1 most important and 6 least important)

Factors	Prioritization
Housing construction	[ ]
Housing acquisition	[ ]
Land acquisition	[ ]
Anticrético (Right of habitation/lease with purchase option)	[ ]
Housing renovation or improvement	[ ]
Applications for purchasing debt from other financial entities	[ ]

I.2.2 If applications for social interest housing loans "decreased," prioritize the loan purposes that influenced this behavior (1 most important and 6 least important)

Factors	Prioritization
Housing construction	[ ]
Housing acquisition	[ ]
Land acquisition	[ ]
Anticrético (Right of habitation/lease with purchase option)	[ ]
Housing renovation or improvement	[ ]
Applications for purchasing debt from other financial entities	[ ]

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Social Interest Housing Credit - Loan Approvals

J. In the second quarter of the 2014 management year, approvals for loans destined for social interest housing behaved as follows relative to the previous quarter:

J.1 Social Interest Housing Credit
[ ] Increased [ ] Remained stable [ ] Decreased

J.2 If you selected "increased," go to question J.2.1; if you selected "decreased," go to question J.2.2.

J.2.1 If approvals for social interest housing loans "increased," prioritize the loan purposes that influenced this behavior (1 most important and 6 least important)

Factors	Prioritization
Housing construction	[ ]
Housing acquisition	[ ]
Land acquisition	[ ]
Anticrético (Right of habitation/lease with purchase option)	[ ]
Housing renovation or improvement	[ ]
Applications for purchasing debt from other financial entities	[ ]

J.2.2 If approvals for social interest housing loans "decreased," prioritize the loan purposes that influenced this behavior (1 most important and 6 least important)

Factors	Prioritization
Housing construction	[ ]
Housing acquisition	[ ]
Land acquisition	[ ]
Anticrético (Right of habitation/lease with purchase option)	[ ]
Housing renovation or improvement	[ ]
Applications for purchasing debt from other financial entities	[ ]

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Social Interest Housing Credit - Rejection of Credit Applications

K. Prioritize the most important reasons why social interest housing credit applications were not approved during the second quarter of 2014 (1 most important and 5 least important):

Factors	Prioritization
Insufficient income-to-payment ratio	[ ]
Insufficient information on repayment sources	[ ]
Inadequate credit record of the client	[ ]
Prior existence of a real estate property owned by the applicant	[ ]
Inadequate documentation of the real estate property to be used as collateral (in case of social interest housing credit with mortgage guarantee)	[ ]

Applications for New Operations and Interest Rate Modifications at Social Interest Housing Credit Levels

L. Prioritize the nature of social interest housing credit operations carried out during the second quarter of 2014 (1 most important and 4 least important):

Factors	Prioritization
New operations	[ ]
Renegotiation with the client	[ ]
Reclassification performed by the entity	[ ]
Other:	[ ]

Social Interest Housing Credit - Expectations

M. For the next quarter, it is expected that social interest housing credits will behave as follows:

| M.1 Social