Excess dollars due to higher income from remittances and foreign credit lines account for the 18% increase in the loan portfolio in that currency.
The reporting period is the year between June 2014 and March this year.
The increase in remittances and credit lines that banks have externally has generated a surplus which the banking system captures and re-enters the market through loans. Of the total portfolio, the segment of consumer loans has registered the highest growth, explained Benjamin Arriaza, director of operations of Banco de los Trabajadores (Bantrab) to Elperiodico.com.gt.
Insurers in the country are extending their range of products with services such as coverage for vehicles over 20 years old, accidental death, unemployment and others.
According to Christian Wolck, manager of the insurance division of G & T, there is a tendency to open up the market to all kinds of people, "because so far companies have been very efficient in providing solutions to businesses, but today we have to focus on people. "
$4.5 billion a year comes from the U.S., generating a fierce battle between 22 banks and transfer companies that compete for the market.
The stiff competition for larger pieces of the cake that makes up remittances is leading banks and financial companies to sign alliances and join forces.
For example the company AirPak / Western Union this week signed an alliance with Banco de los Trabajadores (Bantrab) in order to increase their participation in the remittance business through the promotion "Remesa del Norte” (Remittance from the North). Customers participate in a draw for a car, motorcycles and appliances with each consignment.
In recent years, electronic transfers have been growing at a rapid pace.
Bank managers agree that the use of electronic banking operations reduces transaction costs, being this the main reason for its growth.
Luis Lara, manager of the Banco Industrial (BI) told Prensalibre.com that the institution expects amount of electronic transactions made by the end of 2011 to exceed those of 2010 when they totaled $1,377 million.
In Guatemala, 10% of banking operations are currently handled by banking agents.
Fernando Quiñónez interviewed Herbert Hernández from G&T Continental for Siglo21.com.gt on the importance of banking agents to the Guatemalan economy, which have handled transactions worth more than $700 million since their inception in 2003.
Four banks compete with a wide range of small credits under $20 thousand Dollars.
Industrial Bank (BI), Rural Development (Banrural), G & T Continental and Bantrab offer term, conditions and personalized service in order to fill this market niche.
Sigloxxi.com writes "The president of the Central American Microfinance Network (Redcamif), Reynold Walter, said that loans of this type represent 70% in rural areas, while in metropolitan areas account for 30%. Out of the total, two-thirds are managed by women. "
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