While financial regulators want to increase the quality of banks' management with better qualified managers, a bill intends to reduce the demands of professionalism for a "popular" bank.
The intention of six members in reforming the Organic Law of the People's Bank (Banco Popular) and Community Development (BPCD) is to increase control of the union on the bank's management which is "... moving away from sound banking practices and is worrying not only from a point of view of financial supervision, but because it jeopardizes the savings of workers" according to the statement by the National Council of financial System supervision (Conassif) published by La Nacion.
The criticism attracted by the latest "commercial" venture by the State Bank of Costa Rica should not stick to just the surface of the fairytale castle and pink marketing campaign, but should go to the heart of the concept of state banks, which today have degenerated into simple banking institutions with commercial privileges.
This is precisely what Sebastian Hernandez does in his lucid analysis of the launch of the new brand Banca Kristal in new branches of Banco de Costa Rica, an exclusive service for women, and one which is painted pink.
The scare liquidity of colones explains the lower growth of loans in this currency, while credit growth in dollars continues to lose strength.
Added to the diminished liquidity in colones putting downward pressure on credit growth in that currency, is uncertainty at enterprise-level over recent changes in the exchange rate and lower credit demand for real estate projects, power generation and tourism, as explained by bankers to Nacion.com.
Private banks are protesting because "the provisions contained in the banking law referring to the requirements and authorizations for the establishment and commencement of operations of commercial banks will not be applicable to Produzcamos."
In the process of starting operations, the entity is not required to comply with the rules of the General Banking Act and that of the Superintendency for Banks and Other Financial Institutions (SIBOIF).
The benchmark interest rate for investments and loans remains unchanged until at least April 23.
The Central Bank of Costa Rica reported that the passive base rate, an indicator of the average interest rates for savings given by financial institutions on maturities of 150 to 210 days will remain at the level of 6.70% until 23 April.
An announcement has been made for a funding line for micro, small and medium enterprises without collaterals such as mortgages, wage guarantees or financial analysis.
Using a methodology developed by Harvard University, which measures the skills, knowledge and abilities of the applicants, Costa Rica's Bancrédito bank will provide loans to small and medium enterprises.
According to an article in Elfinancierocr.com, the meeting held on Monday 14 January is part of a consultation strategy that President Chinchilla is conducting in order to find the best way to control speculative capital inflows.
The Costa Rican government is looking at the budgets of the robust state-owned banks as a possibility for satisfying its hunger for taxes.
A bill, over which discussion has already started in the Treasury Commission of the National Assembly, and which is called "Act for the Efficient Management of Public Finances" is a so-called alternative to the Chinchilla government’s failed fiscal plan.
The Higher Council of Private Enterprise has welcomed a proposal by President Ortega, to put international reserves funds into the Banco del Alba , provided legal procedures are followed.
"What we want to make clear is that it has to be in line with the law, on the one hand, but in the medium term, yes, it will mean (...) net resources for Nicaragua, we have to see it in that context," said Jose Adan Aguerri , president of COSEP, according to LaPrensa.com.ni.
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