"If the request is granted, Banrural will become the second bank from CA to have an office in the US," said Friedhoff, a partner at the Fowler White Burnett P.A. law firm in Miami.
According to the lawyer, the Guatemalan bank has taken this step in order to provide direct services to Guatemalans residing in the US, including remittances, and the export and import business, now that Guatemala forms a part of CAFTA.
Banrural Bank, the third biggest financial institution in Guatemala, has successfully focused its services towards those sectors with few resources, including the rural and agricultural sectors.
The Rural Development Bank plans to open 21 branches in Honduras, investing $40 million.
Guatemalan banks are expanding into Central America. This time it is the Banrural, which has plans to open 21 branches in Honduras after obtaining permission from the authorities.
"The two largest banks in Guatemala have crossed the border and are competing for the Central American financial market, setting up operations in El Salvador, Honduras, Costa Rica and Panama; now they are being joined by the Rural Development Bank (Banrural) which has decided to enter Honduras and in the long term is also interested in expanding into El Salvador", reports ElPeriodico.com.