Special Report: Venezuelan Banking Sector Expands, Faces Challenges

Today, Fitch released a special report, titled 'Venezuelan Banks: Review and Outlook.' According to the report, for the fourth year in a row, the Venezuelan banking system was able to expand its loan portfolio in real terms, boosted by record imports, higher government spending and negative real interest rates that have exacerbated consumption among households. Contrary to earlier periods of rapid loan growth, this expansion has been funded by a significant reduction in the investment portfolio and the liquidity of the system has been diminished.