El Niño credit risk: banks and cooperatives brace for delinquency spike

Peruvian financial entities are stress-testing portfolios against an extreme El Niño scenario, anticipating higher delinquency from crop failures and small-producer distress. The article signals a preemptive tightening of credit conditions, though the actual impact remains contingent on the event's severity. This matters because agricultural credit exposure could amplify systemic stress in the financial sector.