SGDB No. 044/2012: Survey on Credit Market Conditions

[Logo: BANCO CENTRAL DE BOLIVIA 1928]

EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA

La Paz, October 15, 2012 SGDB No. 044/2012

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 third quarter of 2012 for it to be answered by the highest executive of the area responsible for credits at your institution. We would appreciate the submission of the form to the Central Bank of Bolivia no later than Tuesday, October 23, 2012. Any inquiries will be attended to by Lic. Martín Villegas (Phone: 2664937, e-mail: mmvillegas@bcb.gob.bo).

Sincerely.

[Signature] MMV/MAAM/OID/MVT Adj.: As indicated

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

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[Logo: BANCO CENTRAL DE BOLIVIA 1928]

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 at the highest executives of the area responsible for granting loans.

A. General Data

Institution:..................................................................................................................................................................

Name of the person responding:..........................................................................................................................

Position:..........................................................................................................................................................................

Phone:................................................................Fax:..............................................................................................

E-mail:...........................................................................................................................................................................

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 period.
3. In the option "other reasons" or "others," the corresponding reason or item must be specified in the form.

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Approval Standards

B. In the third quarter of the 2012 management period, 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 chose "more restrictive," go to question B.4.1 for the corresponding type of credit. If you chose "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 that explain these changes (1 the most important and 5 the 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 that explain these changes (1 the most important and 5 the 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 in relation to other types of credits or assets	[ ]	[ ]	[ ]
Other reasons:	[ ]	[ ]	[ ]

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Approval Standards

B. In the third quarter of the 2012 management period, 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 chose "more restrictive," go to question B.7.1 for the corresponding type of credit. If you chose "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 that explain these changes (1 the most important and 5 the least important)

Factors	Residential Mortgage (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 that explain these changes (1 the most important and 5 the least important)

Factors	Residential Mortgage (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 in relation to other types of credits or assets	[ ]	[ ]
Other reasons:	[ ]	[ ]

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Loan Demand (Applications)

C. In the third quarter of the 2012 management period, loan demand (applications) 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 chose "increased," go to question C.4.1 for the corresponding type of credit. If you chose "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 the most important and 5 the 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 the most important and 5 the 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 Demand (Applications)

C. In the third quarter of the 2012 management period, loan demand (applications) 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 in question C.5 you chose "increased," go to question C.7.1; if you chose "decreased," go to question C.7.2.

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

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

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

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

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Loan Approvals

D. In the third quarter of the 2012 management period, 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 chose "increased," go to question D.4.1 for the corresponding type of credit. If you chose "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 the most important and 5 the 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 the most important and 5 the 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 third quarter of the 2012 management period, 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 in question D.5 you chose "increased," go to question D.7.1; if you chose "decreased," go to question D.7.2.

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

Factors	Prioritization
Housing construction	[ ]
Housing acquisition	[ ]
Housing renovation	[ ]
Higher approvals for purchasing debt from other financial entities	[ ]
Other:....	[ ]

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

Factors	Prioritization
Housing construction	[ ]
Housing acquisition	[ ]
Housing renovation	[ ]
Lower approvals for purchasing debt from other financial entities	[ ]
Other:....	[ ]

Rejection of Credit Applications

E. Prioritize the most important reasons why credit applications were not approved during the third quarter of 2012 (1 the most important and 5 the least important):

Reasons	Corporate (Prioritization)	SME (Prioritization)	Microcredit (Prioritization)	Residential Mortgage (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):	[ ]	[ ]	[ ]	[ ]

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Funding Sources

F.1 In the third quarter of the 2012 management period, the financing of your institution's credit portfolio by type of financing 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:...	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]

F.2 In the third quarter of the 2012 management period, 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:...	[ ]	[ ]	[ ]	[ ]	[ ]	[ ]

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Expectations

G. For the next quarter, it is expected that credits will behave as follows in relation to the similar quarter of the previous management period:

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 that justify 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.

Residential Mortgage	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 in relation to the similar quarter of the previous management period:

	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	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]
Others (specify):	[ ] [ ] [ ]	[ ] [ ] [ ]	[ ] [ ] [ ]