Costa Rican State Banking Profits Decrease

In the first quarter of 2009 state bank profits fell by 25% when compared to the same period in 2008.

Friday, April 24, 2009

According to the Superintendent of Financial Institutions (SUGEF), the opposite happened with private banks, which increased their profits by 12% over the same period.

Patricia Leitón reported statements by Guillermo Quesada, Bancrédito manager, in her article in Nacion.com: "The results for state banks were influenced by an increase in administrative costs, particularly due to increased spending on staff. In state banks, real spending on personnel rose by 4.7% during this period and it fell by 5.4% in private banks."

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Public banks in Costa Rica are competing with the state, paying almost 10% interest in order to raise funds in local currency.

The three state banks and the Banco Popular are offering an interest rate of 10%, while private banks are paying 9% on deposits on terms of between 5 and 7 months.

$117.5 million for the state financial sector in Costa Rica

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The initiative proposed by president Oscar Arias seeks to strengthen the sector and shield it from the global crisis.

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EDITORIAL

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EDITORIAL

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