Guatemala has too many banks, too many bank failures

Guatemala's banks are born and die more fequently that is desirable for a solid, stable and reliable banking system, says Carlos Mendoza.

Monday, July 14, 2008

Writing in The Black Box, a blog focusing on the Guatemala economy, Mendoza says Guatemala has too many banks, and too many of them fail.
According to the Bankers Association of Guatemala, on Aug. 25, 1991 there were 23 private and state banks (excluding the Central Bank) and seven financiers. Now, there are 21 banks and 17 financial societies.
For someone who doesn't know the recent history of the banking system, the first thing they will notice is the growth in the number of financial societies.
However, Mendoza says, what's more important is that many banks have come and gone over this period, with the result that the system is weaker and less stable than it should be.



Market Intelligence

Everything about exports and imports in Guatemala.

Top companies - Quantities, amounts and prices.

more info

More on this topic

Guatemala: Expansion of Banking Services

November 2011

According to experts, more branches do not mean a larger banking population.

While the number of bank branches in the country has grown significantly, the number of Guatemalans who have a bank account is less than 25%.

Experts in the field, such as the economist Julio Estrada, say that one of the main advantages of the population being involved in banking is access to credit, which enhances a country's development.

Guatemala: Banking System has $3,450 million

September 2011

Funds in the banking system have increased by 10.34% so far this year.

Data provided by the Superintendency of Banks (SB), indicates that loan funds have reported increases year after year. Figures up to December 2008 amounted to $2,449 million, for December 2009 it was $3,013 million, and the balance in December 2010 showed an increase of 4.2%.

Guatemalan Banks Consolidate

October 2010

In the last ten years the number of banks operating in the country fell by 52.6%.

According to information from the Superintendency of Banks (SIB), in 1999 there were 38 banks operating in the country, dropping to 18 in 2010. In contrast, sector earnings rose 1736.7%.

Bankers and financial analysts agree today that the financial system is stronger.

Guatemalan Credit Arrears Up 24%

August 2009

The banking system's late portfolio reached $283 million in June 2009, 24% more than the same month of 2008.

As a portion of the entire credit portfolio, late loans accounted for 3% of the total, while it was 2.5% in June 2008. Bad credits grew at a larger pace than the entire credit portfolio, which grew 5% in the last 12 months, reaching $8.856 million.

 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


Macy's store stock clothing from US

We are offering store stock, Jobout, Customer returns women's, men's, children's clothing, accessories, shoes and many other categories from Macy's store.
Store Stock. Jobout. Customer returns. Categories: -...

Stock Indexes

(Nov 21)
Dow Jones
0.69%
S&P 500
0.65%
Nasdaq
1.06%

Commodities

(Nov 22)
Brent Crude Oil
62.940
Coffee "C"
126.65
Gold
1,283
Silver
16.985