Banking

Despite the deceleration of the Peruvian economy in 2017, driven in large part by the simultaneous impacts of the El Niño climate cycle and the corruption scandals related to Brazilian construction giant Odebrecht, the banking sector has remained stable. According to international credit ratings agency Moody’s, at the close of 2017 the sector was exhibiting sustained profitability, diverse earning sources and improved operating efficiency, with the annual report from the Peruvian Association of Banks recording a 4.7% increase in system-wide net income to PEN2.46bn ($757.4m). In 2018 the banking sector is expected to continue to act as an economic bellwether, maintaining positive indicators in terms of liquidity, solvency and efficiency. This chapter contains interviews with Julio Velarde Flores, President, Central Reserve Bank of Peru; Wilber Dongo, Central Business Director, Caja Arequipa; and Eduardo Torres-Llosa, General Manager, BBVA Continental.