Between March 2018 and September 2019, the number of loans granted in Nicaragua by the banking sector has been reduced by around 540,000, a drop attributed to the economic crisis the country is going through.
Data from the Superintendence of Banks and Other Financial Institutions (Siboif), say that in March last year, the month before the onset of the crisis, 1.8 million loans were reported, and in September 2019 the figure fell to 1.26 million.
In Panama, the portfolio managed by brokerage firms totaled $35,577 million at the end of the first half of the year, 11% more than was registered in the same period in 2017.
According to the Superintendency of the Securities Market, of the total portfolio, 43% correspond to bonds, another 27% of the assets belong to common shares, and 21% is made up of other securities.
A delegation of companies from the Mexican state of Jalisco has expressed interest in investing in sectors such as textiles, agriculture, services and construction.
After the visit to Honduras, the businessmen reported that in the next few years they intend to invest between $20 million and $100 million.
Miguel Landero, president of the Mexican Council of Foreign Trade, explained to Laprensa.hn that "... there is a lot of interest in investing in the country ...'In direct foreign investment we could be talking about an intention of $20 million to $100 million, just to start with'."
Guatemalan banks are now allowed to invest in securities issued by private domestic firms in the foreign market.
The Monetary Board (JM) has approved an amendment to an article of the Regulations of the Law on Banks and Financial Groups, allowing banks to invest in corporate bonds that are issued by national companies and which are traded in foreign markets.
In the Costa Rican market, the trend favoring investments in long-term securities has changed, in response to uncertainty about the actions of the Federal Reserve in the U.S.
An article in Elfinancierocr.com reports that "Stock market investors have changed gear in terms of their preferences for timeframes and have put more impetus into their short-term movements."
The multinational plans to change the working culture by implementing a "role models and flexible schedules based on achievement of specific objectives."
Fabricio Kaplan Vice President of Human Resources at Unilever Central America, the Caribbean and Andean, explained in an interview conducted by Humberto Galo for Laprensa.com.ni that they are using in Nicaragua a new form of work already deployed in Colombia which "aims to change the work culture by implementing role models and flexible schedules based on achievement of specific objectives. "
More and more Colombians are channelling their investments in Panama and then retrieving them, explaining why the canal country is the largest contributor to FDI in Colombia.
According to the Colombian Central Bank in the second quarter of 2011, the amount of foreign investment received was $3,372 million of which correspond to $176 million from Panama.
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.
Government and private sector bonds are preferred by Panamanian investors.
An interest in new tools and an attempt to steer clear of the international markets most affected by the financial crisis, have led investors in Panama to turn their eyes towards the local market, where they placed more than $14 billion by the end of July .
This important sum, which represents an increase of almost 20% compared to the same month in 2010, forms the investment portfolio for the Panamanian banking center, where most of the paper funds issued by the state and other are private issuers are placed, offering attractive rates compared to similar securities from other markets.
Investors should ensure that those who manage their assets must have sound processes and investment controls.
Summary of Fitch's special report "Know Your Manager: Investor's Guide to Identifying a Robust Investment Process.
Current level of macroeconomic uncertainty and market volatility has increased the need for investment processes and stronger controls for asset managers as well as a clear understanding of these processes by the investor.
According to Fitch Ratings, even though the economic scenario has improved, Central American banks face challenges related to the quality of their assets.
Central American banking systems have weathered the financial crisis relatively well. Even though profits fell considerably during 2009, industry solvency levels remain good. Profits fall mostly because banks opted for liquid assets and increased their expenses in provisions.
According to Fitch Ratings, even though the economic scenario has improved, Central American banks face challenges related to the quality of their assets.
Central American banking systems have weathered the financial crisis relatively well. Even though profits fell considerably during 2009, industry solvency levels remain good. Profits fall mostly because banks opted for liquid assets and increased their expenses in provisions.
How irrationality affects decision making by investors regarding portfolio diversification.
The theories about portfolio diversification have an assumed initial basis: that investors’ decisions are based on the exercise of rationality. But, too often, this is far from reality.
Eduardo Thomson analyzes this issue in an article in Americaeconomía.com.
If we are to maintain growth and profitability in our portfolios, we should be much more aggressive in the types of instruments for investment.
The worst enemy of investment is inflation. In Costa Rica, this variable has increased significantly. According to estimates by the World Bank, it will remain one of the highest in the region.
Furthermore, it is very possible that there will be an increase in the money supply because the government is planning to ask the International Monetary Fund for a $750 million loan to strengthen the economy. Whether it is through the increase in bank credit if these funds are targeted to strengthen it or by other means, there will be more money in the street, which would elevate inflationary pressure.