As part of a reorganization process at the regional level, the Bank of Swiss origin has decided to close its representative office in Panama City.
Arguing that its exit from the Panamanian market has no relation to the Panama Papers scandal, and required a long planning process, a bank spokesperson told Swiss Info that offices in other Latin American countries will not be affected and will continue to operate normally.
A company spokesman told Swissinfo.ch that"... the closure is due to a reorganization of offices in Latin America, which represents 'a region of significant growth for asset management and private banking'."
Slow growth is projected in El Salvador, very good performance in Nicaragua, stability in Panama, more competition in Guatemala and moderate growth in Costa Rica.
From a report by Fitch Ratings entitled "2015 Perspectives: Central American Banks":
Fitch Ratings has revised the outlook for the sector from positive to stable, because the agency does not anticipate substantial improvements in respect to the previous year. The system's profitability will remain low, with less than 1.0% ROAA. The results are limited because of the high dependence on net interest margin (NIM) and additional expenses in provisions for loan losses, due to regulatory changes that established gradual constitutions of general provisions for the best qualified loans. In addition, Fitch does not anticipate improvements in revenue diversification and also foresees a significant revenue exchange rate differential. This last factor has a significant influence on the results of the banks in Costa Rica.
The Costa Rican Securities Superintendent is planning changes to provide more transparency and information to the market.
Those who develop investment products must "detail the identity of the company, its team, report on their knowledge of the subject, the results and experience they have and disclose any conflicts of interest. "
Elfinancierocr.com reports that "by March 2013, all firms providing investment banking services in the country will have to register, disclose who their executives are, their experience and potential conflicts of interest. This is another initiative of the chief of the General Superintendence of Securities (Sugeval), Carlos Arias, within his list of short term goals. "
Clients of wealth management programs are those who hold capital investment worth over $250,000, requiring services to guarantee its duration and growth.
In Latin America there is an increasing number of young people who have reached an economic level that has allowed them to pay for their homes, provide basic education for their children, build savings, and who want to consolidate their future in terms of higher education, gain security with health plans, and obtain additional income for their retirement plans.
Bank credit tightening makes it necessary to look for alternate private capital financing sources.
In the Elfinancierocr.com blog article "En numerous," Edgar Delgado Montoya outlined five options as a source of financing for both start ups and business expansion projects: Emerge Fund, Link Investment Caseif II, E + Co LAC, and E3 Corp.
Volio Capital and CFS Investment Advisors have created an investment bank, the E3 Corp, which will serve Central America.
Elfinancierocr.com reported that within the association, Volio Capital will focus on investment banking and CFS in advising investors, and they will take advantage of the experience that Volio has in the region and in some Caribbean islands to "expand its area of influence."
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