Financial Services in Latin America

Economy and Development Report by CAF - Development Bank in Latin America -entitled Financial Services for development: promoting access in Latin America.

Thursday, December 8, 2011

From the introduction of the first chapter of the report:

Access to financial services - Development and Welfare

Why could access to financial services be an important factor for economic development and welfare in Latin America? A first important aspect is that financial institutions have the mission to attract domestic savings, and possibly also those from external sources, to finance both working capital (liquidity needs) such as business investment (physical capital). Meanwhile, families also require credit to finance investment or expenditure needs (e.g. children's education or purchase of durable goods), whose timing may not coincide with the availability of current income or savings.

Apart from the savings and credit services, the financial system provides assurance services, crucial for investment projects subject to events or fatalities that could negatively affect their return (e.g, climatic instability in the case of agricultural production), and for the welfare of families, subject to accidents or diseases of the head of household or any of its members. Finally, a very important service offered by financial institutions is associated with the facilitation of transactions or the methods of payment in the economy.

More on this topic

Financial System: Warning by Bill

October 2020

In the Honduran Congress there is a bill that seeks to prohibit banks and finance companies from capitalizing interest on payments not made from March 2020 to December 2021, a measure that worries the sector.

The initiative was sent by the Executive to the National Congress months ago.

Banco Nacional de Panama Issues $1 Billion in Bonds

August 2020

In an auction process in which more than 200 investors from different parts of the world participated, the bank placed the debt at a rate of 2.5% for a 10-year term.

This transaction is the first international bond issue in the capital markets of Banco Nacional in its almost 116 years of existence and represents the largest issue that any Panamanian financial institution has made.

Trends in Banking Services

October 2011

New technologies will be the basis for changes affecting users of financial services in the future.

Accessing your account from Facebook and financing being offered at the time you buy a product are some of the innovations that we could be seeing in the coming years in the banking industry.

Guatemala: Small Store Banking on the Rise

January 2010

The number of basic banking services offered by local, small stores increased 27.6% when compared to 2008.

Currently there are 1.915 agencies offering basic transactions like cashing small checks and paying public services.

"In Guatemala, two banks have implemented this business model: G&T Continental and Industrial (BI)", reported "In 2010, G&T expects to grow 30% in this segment, and BI 25%".

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