Modification to Banking Regulations in Guatemala

Tomorrow the Superintendence of Banks (SIB) will request that the Monetary Board approve a modification of the Regulations for Credit Risk Management.

Tuesday, December 9, 2008

Even though bank portfolios in arrears are not at a critical level, the SIB will request that the Monetary Board make the changes to the rules in order for banks to increase their reserves for bad debts (loans).

Edgar Barquin, head of SIB, said that the changes will strengthen the banking system ability to deal with any eventuality.

More on this topic

Guatemalan bank reserves increased

January 2009

Since yesterday financial groups offering loans will be required to have reserves that equal 100% of the expired credits portfolio.

According to, "In order to achieve this, generic reserves have been established to support current (specific) requests.

Banks should have reserves representing a percentage based on the last accrued months of portfolio, which range from 5% for a 30-day accrual and up to three month, and 100% for more than a year."

Guatemalan Banks to Cover Currency Exchange Risk

December 2009

Banks in Guatemala will have to increase their capital from 10% to 14% when granting loans in U.S. dollars to people with incomes in quetzales.

Banking Superintendent Edgar Barquín explained that the measure, which affects a third of the entire loan portfolio in dollars -$982 million-, will force banks in the system to increase their capital in $48 million.

Guatemala: More Controls On Banks

September 2016

A bill being promoted by the executive branch seeks to authorize the Bank of Guatemala to finance the capitalization of a bank when it faces problems affecting financial stability.

The aim of this initiative is to adapt the rules on financial supervision and risk control to international standards, to prevent the stability of the domestic financial system from being affected when a bank has liquidity or solvency problems.

"We Cannot Lend Money Senselessly"

February 2009

The Central Bank of Honduras is pressuring bankers to enlarge their credit portfolios, but banks are resisting any change to their risk policies.

In statements in La Tribuna, the well-known banker, Jorge Bueso Arias, insisted that "it is not that [the Central Bank] wants to put forth mandates, but rather...

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