Costa Rica: High Financial Intermediation Margins

The difference in the interest paid by banks on deposits and loans can be as much as 22%.

Monday, August 23, 2010

Intermediation margins are a measure how a financial sector performs its mediation role and is one indicator of efficiency. Though there are various ways to calculate the figure, Costa Rica's margin is higher than in other economies.

Gabriela Mayorga López in Elfinancierocr.com comments on a study from the Costa Rican Banking Association (ABC in Spanish) that indicates that in June, "Banco Promérica recorded the largest colones margin with 21.8%. It was followed by Citi with 14.3% and Banco General with 14%. Banco Popular had the highest dollar margin with 7.8%".

More on this topic

Costa Rica: Financial Intermediation Margin Decreases

March 2017

The difference between interest rates and deposit rates in local currency went down from 13.5% in 2005 to 6.8% in 2016.

From a statement issued by the Costa Rican Banking Association:

March, 2017. A comparative analysis by the Costa Rican Banking Association (ABC), between 2005 and 2016, with data from the Superintendent of Financial Institutions (SUGEF) shows that the Financial Intermediation Margin (MIF) in colones, has maintained a downward trend, going from 13.5% to 6.8% in that period.

Financial Intermediation Margin in Costa Rica

April 2016

The margin of financial intermediation in colones fell by 1.3% and stood at 7.1%, while a rate of 3.5% was recorded dollars.

From a statement issued by the Costa Rican Banking Association:

31 March, 2016. The Costa Rican Banking Association (ABC by its initials in Spanish) presents data on the performance of the Financial Intermediation Margin (MIF by its initials in Spanish) between 2008 and 2015, showing that this was reduced at the end of last year, both in colones and dollars.

Risk of Devaluation in Costa Rica?

December 2013

Credit growth in dollars is causing concern about possible risks of devaluation and a rise in interest rates.

Nacion.com reports that: "Guillermo Quesada, President of the Chamber for Banking and Financial Institutions said that banks have been proactive and have already taken steps to address the risks."

Margins for Financial Intermediation in Costa Rica

May 2013

Private banks operate with margins between interest rates which are considerably lower than state banks.

An article in Elfinancierocr.com points out that "the five banks with the lowest margins in the country are private ones, as is clear from a study by EF based on data reported to the Superintendent of Financial Institutions (Sugef) for December, 2012 ".

 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


Scotiabank de Costa Rica

Organization that operates in Costa Rica.
Phone: (8001) 72 6842

Company Profile

Stock Indexes

(Aug 30)
Dow Jones
-0.07%
S&P 500
0.14%
Nasdaq
0.38%

Commodities

(Oct 20)
Brent Crude Oil
56.690
Coffee "C"
130.55
Gold
1,284
Silver
17.160