By requiring banks to have additional capital requirements the Sugef aims to discourage consumer loans, mortgages and vehicles loans with long repayment terms.
Arguing that terms of over 30 years for housing loans and more than 5 in consumer loans encourages overindebtedness of Costa Ricans, the Superintendent of Financial Institutions (SUGEF) has presented a proposal toreform the ruleson capital adequacy of financial entities, in order to require entities that carry out these credit operations to have additional capital.
The private sector is opposed to the decision of the Income Management Service to request information from banks to identify potential evasion on the part of companies.
Miriam Guzman, head of the Income Management Service (SAR), explained to Laprensa.hn that they request information from the banks and then send a friendly request about the inconsistencies between those declared and those reported at the bank.The company or individual is then asked to file a return."..."We give them a deadline, and if they do not comply, the sanctions detailed in the Tax Code are applied, explained Guzman."
About 50% of the 147,000 new vehicles sold between March 2016 and December 2017 were financed by banks and financial institutions, for close to $1 billion.
An analysis of the vehicle fleet in Costa Rica by the Business Intelligence Unit at CentralAmericaData reveals that placement of loans for vehicle purchases during the period between March 2016 and March this year amounted to $1.2355 billion.
In the last quarter of 2016, the total amount of transactions made through the network of banking agents grew by 26% compared to the same period in 2015, and the average amount per transaction increased from $99 to $118.
Data from theQuarterly Bulletin of Financial Inclusionby the Superintendency of Banks indicates that between September and December of last year, more than 7.8 million transactions were made, including deposits, withdrawals and credit payments made through the network of banking agents, 26% more than in the same period in the previous year.
A law has come into force which requires banks to register as atypical all transactions of more than $4 thousand that are realized in cash.
The decree by the Central Bank which comes into effect from April establishes new requirements for banks when dealing with transactions made both in domestic and foreign currency, as well as cash or through other means.
Fitch Ratings, "Reputational risk events could put broad pressure on funding access and damage Panama's position as a regional financial center. "
From a report by Fitch Ratings:
Fitch Ratings-San Salvador/New York-15 March 2017: Reputational and conduct risk will remain key issues for Panamanian banks in 2017 owing to the interconnectedness of the regional financial system and ongoing high profile corruption cases that have affected multiple countries in Latin America, says Fitch Ratings. Reputational risk events could put broad pressure on funding access and damage Panama's position as a regional financial center.
Davivienda must repay $451,000 to 200 customers and pay a fine of $453,000 after having charged fees for advance payments on credits.
From a statement issued by the Consumer Protection Authority:
The Consumer Protection Authority wishes to inform citizens that, after at the culmination of a due process, the sentencing court has issued a resolution determining that the bank Davivienda must reimburse 203 consumers the sum of $451,357.78, and pay a fine of $453,099.60, due to violations of the Consumer Protection Act, upon collection of fees or charges for advance payments on credit.
Of the $10,000 million granted in bank loans for consumption up to November 2016, 64% were for consumer loans, 16% for car purchases and almost 20% were credit card loans.
Between January and November 2016 the balance of personal loans granted by the banking system grew by 7%, going from $45.7 billion to $48.5 billion.Of the total awarded up to November 2016, 64% were personal loans.
Companies that make or receive international transfers for amounts of over $50,000 per transaction will have to indicate the origin of the funds.
Banking entities have reached an agreement to amend theSelf-RegulationRulesfor Monitoring of International Transfers to Prevent Money Laundering and Terrorist Financing. The amendment was approved in October 2016, and banks will have to start implementing the new measures in January this year.
In Costa Rica several banks expressed their disagreement with the new standard which will prevent them from deciding how much of their capital will be denominated in dollars and how much in colones.
In an attempt to gain more control of the risk involved in foreign exchange transactions by banks and their impact on the exchange rate, the Central Bank has changed therules for foreign exchange cash operations, forcing banks to change the composition of their assets so that the proportion denominated in dollars is equal to the proportion of assets in that currency.
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