...Weakened Operating Environment for Banks: The Peruvian financial system benefits from a stable economy with a strong track record of sustained growth. However, potential GDP growth has declined in recent years. In addition, Peruvian banks' reliance on the central bank to close balance sheet dollarization gaps and provide local currency liquidity is a persistent feature of the financial system, weakening Fitch Ratings' view of the operating environment. Stable Company Profile: The strength of Banco Internacional del Peru S.A.'s (Interbank or the bank) franchise and business model is a high influence rating factor. Interbank is the fourth- largest universal commercial bank in Peru with a stable year-over-year market share by assets of around 12%. Credit Growth Slowdown: Interbank's loan portfolio grew by 4.6% in 2016 compared to an average of 15.3% during the previous five years, a rate moderately higher than the banking system average. Lower demand for credit, as well as tighter underwriting...
