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

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.