The secret about the soundness of banks

The financial soundness indicator of banks may no longer be kept secret if the Constitutional Court decides that it shouldn’t be.

Wednesday, September 14, 2011

An appeal filed by the weekly paper El Financiero could lead to a decision to make public the indicators of capital adequacy of banks in the country.

Currently this indicator is not published by the Superintendency of Financial Institutions (Sugef) meaning that bank users do not have this information when making decisions about which institution to turn to.

The constitutional entity, Sala IV, is analyzing whether the indicator, which reflects the strength of each entity, represents the percentage of assets used to support risky assets such as loans.

An article adds: "Today, Sugef, which supervises financial institutions, only announces the average capital adequacy of all banks in the country, but refuses to give specific information for each them."

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