Costa Rica: Changes in the Banking Reserves Will Restrict Credit

According to Banks, the change in the calculation of the reserve will increase the costs of the financial intermediaries and will reduce the supply of credit.

Wednesday, June 24, 2009

The Central Bank of Costa Rica modified the methodology used to calculate reserves, implicating that, beginning next July 1st, Banks must have deposited in the Central Bank, at the end of each day, deposits of no less than 97.5% of the minimum legal reserves for the previous month. At the moment this calculation is done based on deposits from 5 days beforehand and it is at 90%.

An article on interviews Mario Rivera, General Manager of Banco de Costa Rica, who indicates that the measure “is going reduce the availability of funds that banks can lend, consequently, this will impact the rising costs of these resources to the public.”

More on this topic

Costa Rica Suspends Foreign Credit Reserves

July 2011

Having been taken to the Constitutional Court, an appeal against a measure submitted by the Chamber of Banks and Financial Institutions, has been suspended until further ruling.

The appeal was filed against the agreement by the Board of the Central Bank of Costa Rica, which states that financial intermediaries must have reserves not only for deposits and income, as mandated by the Organic Law of the BCCR, but also operations originating from short-term external loans, revolving lines of credit contracted abroad and transactions originating in foreign loans that contain provisions for enforcement of payment in a period of less than 360 days, or that do not preclude or exclude payment in that period.

Banking Legal Reserve Requirements Reduced in Nicaragua

February 2011

The Central Bank announced that the daily legal reserve requirement will now be 12%, while it now stands at 16.25% weekly.

According to Antenor Rosales, president of the Bank, financial institutions must maintain a minimum reserve of 15% biweekly and a daily minimum reserve of 12%.

$290 Million to be Returned to Salvadoran Banking

March 2009

Banks in El Salvador will receive $290 million that where frozen as a liquidity reserve.

The Salvadoran Central Reserve Bank (BCR) had implemented a liquidity reserve of 3% of all deposits as protection against capital flight during the last presidential election.

According to what Daniel Choto wrote in, the BCR will begin returning the money gradually, freeing $58 million every fourteen days, in 5 installments.

Costa Rica: High reserve requirements would raise credit costs

April 2008

Raising the minimum legal reserve requirements for commercial banks and financiers could translate into an increase in interest rates for customers.

The increase in reserve requirements is being considered in an effort to capitalize the Central Bank and give it more power to control inflation. The Executive Branch has sent a bill that would have this effect to the Legislative Assembly.

 close (x)

Receive more news about Banking

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones

Software for banks, brokerage firms and financial institutions

Colombian company with more than 30 years in the market develops and offers IT solutions for Central American companies in the financial and banking sector.
Solutions for managing investment portfolios, investment...

Stock Indexes

(Jan 16)
Dow Jones
S&P 500


(Jan 23)
Brent Crude Oil
Coffee "C"