Peruvian Banks: Key Factors for Economic and Social Growth in 2023

The role of banks in the Peruvian economy has become more crucial than ever in a context of challenges and opportunities. In 2023, financial institutions have not only been key players in the circulation of resources but have also proven to be catalysts for economic and social growth. With a total credit increase of 12%, banks have supported the creation and expansion of businesses, which translates into an increase in job generation and, consequently, in the strengthening of the Gross Domestic Product (GDP) projected to grow by 2.5% for the year 2024. The impact of banking investments is felt across various sectors of the economy, with the financial and insurance sector being a clear example of this. In 2022, this sector accounted for 4.8% of GDP, demonstrating how financing decisions can directly influence the country's economic growth. This highlights not only the importance of the stability of the financial system but also its capacity to foster an environment conducive to the creation of new job opportunities. The supervision of entities such as the Superintendence of Banks, Insurance, and AFP (SBS) and the Superintendence of the Securities Market (SMV) has allowed the Peruvian financial system to operate with a financial intermediation rate of 44%. This indicator is fundamental, as it reflects the efficiency with which banks channel savings into productive investments. Trust in the financial system not only provides stability but also attracts foreign direct investment, which reached 6.2% of GDP in 2022. One of the most significant challenges facing Peru is its dependence on cyclical sectors, such as mining, which accounts for 10% of GDP. However, diversification strategies driven by banks are beginning to change this landscape. By directing their investments toward emerging sectors, a more resilient ecosystem is being created that can withstand economic fluctuations while simultaneously generating more sustainable development. Financial inclusion is another relevant aspect of the work of banking institutions. Their commitment to improving access to financial services has enabled more Peruvians to integrate into the formal economic system, which in turn contributes to reducing poverty and inequality. This approach is essential for fostering long-term growth and achieving equitable development. Additionally, the mitigation of economic risks is a vital function that banks perform in the Peruvian economy. Through products such as insurance and diversified credit options, financial institutions help families and businesses protect themselves against events that could threaten their economic stability. This not only benefits individuals but also strengthens the country's business fabric. Current circumstances provide a unique opportunity for banks to continue their work as agents of change. The combination of a growing economy, a solid financial system, and an adequate regulatory framework positions Peru as an attractive country for both domestic and foreign investors. The optimistic GDP projections reflect the potential that can still be unlocked through greater investment and diversification. Moreover, the social impact of banking investments cannot be underestimated. Job creation and income generation enable families to improve their quality of life, which in turn contributes to a more stable society. The benefits of economic growth must be shared by all sectors of the population, and this is where banks can play a crucial role by ensuring that more Peruvians benefit from the opportunities that arise. Finally, it is evident that the path towards a prosperous future in Peru is intrinsically linked to the health and capacity of its banking sector. As the country moves toward a more diversified and resilient economy, it is essential for financial institutions to continue innovating and adapting to maintain their role as pillars of economic and social development. With a long-term vision and a strong commitment to progress, banks can and should continue to be a driving force for growth in Peru.