In the 2nd quarter of 2018
Default ratios of non-financial corporations and households dropped from the previous quarter, while bank deposits remained stable
According to the data released by the Bank of Portugal, at the end of the 2nd quarter of 2018, the balance of credit granted to non-financial corporations located in the Autonomous Region of Madeira stood at €1.6 billion. The amount of defaulted loans went down by €26 million to a total of €288 million. The default ratio of this type of corporations decreased to 17.8%, remaining 5.2 percentage points (p.p.) above national average. The percentage of borrowers with overdue loans reached the lowest value since the end of 2010, standing at 25.4%, still 3 p.p. above the country’s ratio.
In the household sector, the balance of credit granted at the end of the reference period amounted to €2.9 billion, with the default ratio on bank loans to households decreasing to 4.7% (down by 0.2 p.p. from the previous quarter). In Portugal, the value of this ratio dropped to 3.9%. The defaulted loans of the households residing in the Autonomous Region of Madeira stood at €137 million, down by €7 million from last March.
Deposits and deposit like instruments in the local bank establishments reached a total of €4.5 billion at the end of the 2nd quarter 2018, the same value as in the previous quarter.