Guatemalan banks are expanding into Central America. This time it is the Banrural, which has plans to open 21 branches in Honduras after obtaining permission from the authorities.

"The two largest banks in Guatemala have crossed the border and are competing for the Central American financial market, setting up operations in El Salvador, Honduras, Costa Rica and Panama; now they are being joined by the Rural Development Bank (Banrural) which has decided to enter Honduras and in the long term is also interested in expanding into El Salvador", reports ElPeriodico.com.

With a planned investment of $40 million, Banrural plans to open between 19 and 21 bank branches in Honduras during the first half of 2012. I will be the third Guatemalan financial institution to launch foreign operations.

"Sergei Walter, assistant manager of Banrural, explained that they have been working on regional expansion plans since 2009, and Honduras was chosen as the first country to venture into because it has social and economic characteristics similar to those of Guatemala", reported the publication.

Source: elperiodico.com.gt