Venezuelan Government Banks are stingy with loans

November 3, 2010

One of the arguments, which we know is false, for taking over and nationalizing institutions is that they are not socially responsible, productive, etc.. You have all heard the reasons. But the Government has turned out to be a terrible manager. This graph from today’s La Patilla (Which BTW is getting better and better except for the girl pictures):

shows how stingy Government banks are at lending. You can see in the y-axis, the percentage of intermediation (loans to deposits) of the top twenty banks in the system and in the x-axis the percentage of official, Government deposits.

As you can see, three of the four Government banks which are in the top twenty category by deposits are the worst ones in lending. And the fourth one is Banco de Venezuela whose intermediation ratio has been deteriorating significantly since it was taken over by the Government a year and four months ago. At this rate it will join the other three.

This shows what a waste of money and effort it has been to make these banks grow and absorb others and/or buy them. The private sector is and has always been more efficient at doing its job and this graph simply proves it.

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17 Responses to “Venezuelan Government Banks are stingy with loans”


  1. […] Devil's Excrement A Brave Woman and Supreme Court Justice Speaks OutVenezuelan Government Banks are stingy with loansHow the Chavez Government illegally gives away our oil to NicaraguaSpoken like a true Dictator: If […]

  2. Kepler Says:

    I’ll tell you a trick: move the middle bottom on the mouse.

  3. Roberto N Says:

    No Kepler, to get the boobs to pop up you have to shake your monitor up and down……..

  4. Kepler Says:

    Ok, I thought it was like boobs popping up all over the place via pop-up ads. You actually have to look for it…but “seek and you will find”, sir.

  5. island canuck Says:

    Thanks Miguel.
    That saves a lot of time.

    Now I don’t have to wade through all the depressing news to get to the meat of the site.

  6. Kepler Says:

    Girls? Where do you see girls? I haven’t seen girls in that link. I see something from BANESCO (no girl), I see something of Analyticom, I see baseball and that’s it. Perhaps the ads are designed depending on what URL you were coming from or something 🙂

  7. Roy Says:

    Anon,

    Caracas Chronicles is going through a difficult moment. They just abandoned their previous platform. Look for the article linked by Moraimag at http://caracaschronicles.com/2010/10/24/industrial-policy-chavista-style/

    It is a good read and very illustrative.


  8. I am no prude, I just think the site is doing a great job, way above noticias24 and noticierodigital, adding its own investigative reporting and the girl pictures subtract from it.

  9. anon Says:

    @moraimag the link you supplied for Caracas Chronicles is coming up with a not found error message.

  10. anon Says:

    I agree that lapatilla.com is maturing nicely and I catch myself returning often. The pictures of girls are generally nice but, without wishing to sound prudish 😉 perhaps a serious news site is not the most pertinent place. In his mock-sexist raillery, AFR might say that we come for the girls and stay for the news.

  11. Chester Says:

    If government banks aren’t lending money it isn’t because they don’t want to, but because they don’t have any. To begin with, they have a huge cash-flow problem because most of the loans they have already given are not being paid off (since they were mostly given to “friends” of the government). Then there’s the fact that the banks are managed by chavistas, who have no problem pocketing any money they see lying around, so the money those banks are supposed to have and the money they actually have are two very different things.

  12. Moraimag Says:

    If all the loans are putting conditions as crazy as the one’s described by a reader in CaracasChronicles (http://www.caracaschronicles.com/node/2734) then is not surprisingly they are not lending, who would take loans on that conditions?

  13. Roy Says:

    Kepler,

    Well, after all, capitalist math was invented by the imperialists to oppress the people. It is only natural that socialists invent a different math. In Socialist math 2 + 2 does not have to equal 4 and A does not need to equal A. These arbitrary rules were imposed on the people by the imperialists, but the Socialists are freeing mankind from such mathematical tyranny.

  14. Robert Says:

    Thanks for the links to the girls although it was a little surprising to see it in the headlines of the portal

  15. island canuck Says:

    What’s wrong with the girls at La Patilla?? 🙂
    It’s a nice break from all the depressing news.
    I know I’m shallow

    If the government banks aren’t making loans how are they making any profits? Just another drain on the limited resources.

  16. Kepler Says:

    That graphs is just a capitalistic graph and your maths are capitalistic graphs.

    Seriously: you probably know how often Chávez says he loves mathematics. I have already heard and read Chavistas stating Chávez loves it. I suppose by repeating that statement he is making people believe the random numbers he throws around are NOT a joke.


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