The Panamanian bank is continuing its expansion plans in Central and South America.
Multibank, an entity founded on Panamanian capital, intends to consolidate and expand its share of the banking sector in Colombia and Central America, where it has already acquired full control of Macrofinanciera SA (Colombia) and the incorporation of the company Multi Resuelve (Costa Rica), focused on financing the purchase of cars.
The Rural Development Bank plans to open 21 branches in Honduras, investing $40 million.
Guatemalan banks are expanding into Central America. This time it is the Banrural, which has plans to open 21 branches in Honduras after obtaining permission from the authorities.
"The two largest banks in Guatemala have crossed the border and are competing for the Central American financial market, setting up operations in El Salvador, Honduras, Costa Rica and Panama; now they are being joined by the Rural Development Bank (Banrural) which has decided to enter Honduras and in the long term is also interested in expanding into El Salvador", reports ElPeriodico.com.
According to experts, more branches do not mean a larger banking population.
While the number of bank branches in the country has grown significantly, the number of Guatemalans who have a bank account is less than 25%.
Experts in the field, such as the economist Julio Estrada, say that one of the main advantages of the population being involved in banking is access to credit, which enhances a country's development.
The International Banking Center notes a dynamic expansion of the internal loan portfolio to 20.5%, and the same can be said for the portfolio investments, up 14.7% during the month of August.
A press release from the Superintendency of Banks of Panama reads:
The executive report of the Superintendent of Panama banks reveals that the net accumulation from January to August 2011 totaled $885 million, or $175 million more compared to the same period in the previous year. This result is mainly due to an increase to 11.7% in the lines of interest income and 38.6% belonging to other income.
As part of its expansion plan, the bank will invest in the construction of five new branches.
The recent opening of branch number 21 on the Gran Via is part of the plan.
General manager Roberto Silva informed the media that another branch in the downtown area of San Salvador is also scheduled to be opened.
"G & T Continental is considered one of the largest in Central America, and with assets exceeding $4.747 million, it serves more than 1.7 million customers and has more than 3,600 service points in the region, in countries like the United States and neighboring Guatemala, Costa Rica and Panama", reported an article in Elmundo.com.sv.
The main shareholder of the new bank, which will open operations on 13 July, is the Panamanian holding company Bicapital Corporation.
As outlined in an article in Elperiodico.com.gt, Banco Industrial El Salvador will absorb the existing operations of the representative office of Banco Industrial Guatemala, which is already operating business loan services in El Salvador.
The Honduran banking group has opened its first regional agency in the Panamanian banking center.
Camilo Atala, Grupo Ficohsa’s chairman, said the headquarters in Panama will serve as a platform to expand into the rest of the Central American market.
An article in Laprensa.hn contains statements by the executive, "Ficohsa will operate with international license in Panama,.
The Rural Development Bank of Guatemala initiated an expansion process through Central America.
During its annual meeting it announced that they have started the admission process in the corresponding bodies of two Central American countries. Due to procedural reasons, they did not specify which.
Consultations by Prensalibre.com, with the Superintendence of Banks of Guatemala, indicated the Honduran regulator has requested information from the bank.
The Guatemalan bank will invest $20 million in the opening of five agencies in El Salvador.
Luis Lara Groject, Banco Industrial's manager, commented that the opening had been planned for May but the development of information systems took longer than expected.
According to elperiodico.com.gt the new Salvadoran branches will have $20 million worth of capital initially.
Luis Carlos Sarmiento Angulo, one of the richest men on earth, is the owner of Grupo Aval, which controls some of the largest banks in Colombia.
Grupo Aval agreed to purchase 100% of the shares of BAC-Credomatic from GE Capital for $1.9 billion. Currently, GE owns 75% of BAC-Credomatic and agreed to buy the remaining 25% to sell it to Grupo Aval.
Industry insiders were expecting the Colombian group to expand outside of it home nation, as it had no more room to grow in its domestic market.
As part of its expansion plan in the country, the banking institution opened a new branch in Alajuela.
During 2010, the bank plans to open 4 new offices.
“This new office aims to increase the number of deposits from the public, which grew 40% during 2009. Banco Cathay was funded in 1998”, reported El Financiero.
By opening its 11th branch, Grupo Financiero G&T Continental now features 600 locations in Central America.
The new Salvadoran branch is located at Shopping Mall Aventura Plaza, and will offer services in financing, investment, treasury, commerce, cash management and corporate and individual advising.
"With the new branch, the bank now employs 159 people in the country", reported Laprensagrafica.com.
The financial group Bancolombia would come to Guatemala with the signing of the Free Trade Agreement between both countries.
Prensa Libre reported that the Colombian ambassador in Guatemala, Eduardo Lopez Sabogal indicated that the Bancolombia Group has been negotiating with domestic private banks, looking for a strategic alliance, similar to the one developed in El Salvador, with the purchase of the Banco Agrícola.
The National Bank of Costa offers 250 services at 500 local small businesses.
Using the internet, business owners at pharmacies, small shops, and mini supermarkets can attend to clients of the Bank who can access banking services in areas where it is not profitable to install a full branch.
Mercedes Aguero reports in an article on Nacion.com that "to become a correspondent of the National Bank, interested business owners must sign a contract with the bank in which the necessary conditions and requirements are established. The commission that the clients pay for using these services is shared between the bank and the business owner."