The Variation in the Weighted Average Interest Rate and Its Influence on the Credit Portfolio of the Guatemalan Financial System

The Variation in the Weighted Average Interest Rate and Its Influence on the Credit Portfolio of the Guatemalan Financial System

Mayra Irasema Gaitan (University of the Valley of Guatemala (UVG), Guatemala)
DOI: 10.4018/978-1-5225-4981-9.ch009

Abstract

Due to the fact that the active weighted average interest rate that the banks of the national financial system have applied to the loan portfolio has been stable in recent years, it was considered important to calculate the impact of this measure on the performance of the balance of the loan portfolio by economic activity in Guatemala from 2008 to 2016; it was considered this time frame since the consulted web portals shows more information as of 2008. With the above information, it will be possible to observe the important variations and what events could propitiate it, the percentage of growth and which economic sectors have most financed their operations. The increase in the loan portfolio, in addition to being considered a strategic objective of any financial institution to increase its market share and income, is also a sign of confidence among corporate users, family members, and other entities involved in maintaining the national economic stability.
Chapter Preview
Top

Literary Review

Economic Growth

The economic growth of a country refers to the increase of indicators such as:

  • Growth in the production of goods and services,

  • Increase energy consumption,

  • Increased investment (public and private),

  • Increased savings,

  • Investment (public and private)

If these indicators increase, the theory tells us that the well-being of the population of a country should improve as well; in other words, there is a positive relationship between both indicators.

GROSS DOMESTIC PRODUCT - GDP

GDP refers in macroeconomic terms to the monetary value of goods and services produced in a country or region over a given period. In Guatemala, GDP has shown a positive behavior, growing above 3% since 2011, and according to expert estimates, at the end of 2016 will be around 3.6%.

Complete Chapter List

Search this Book:
Reset