One Less State Bank

The Legislative Assembly has approved the absorption of Bancredito by Banco de Costa Rica, which must take on both the entity's assets and its obligations.

Tuesday, September 11, 2018

n dir="ltr">After determining that Banco Crédito Agrícola de Cartago (Bancrédito) was not financially viable, last March the National Council of Supervision of the Financial System (Conassif) recommended the absorption of the financial institution, a process that was completed yesterday when the Assembly voted in favor of the suggestion.

See: "
End of the Road for State Bank"

Regarding the take over of Bancrédito, reports that " ...In December 2017, Conassif ordered the intervention of the public entity because it had fallen into default with the Ministry of Finance, not having redeemed investments made at the beginning of the previous year.

The article adds that " ...At the end of August Conassif approved extending the intervention of the Cartago based entity until December 22, while the process for the BCR to assume the assets and liabilities of Bancrédito was completed."

The approval of the absorption process brings to an end a process that began due to the inefficient way in which the entity's resources had been managed for several years. In October 2016, when Banco Crédito Agrícola de Cartago began to give more clear signals of financial deterioration, its authorities announced that they intended the State of Costa Rica to capitalize it, with the aim of correcting the very mismanagement that had led it to this situation.

At that time, here at CentralAmericaData we wrote about the immortality of state-owned companies: "Nothing is more harmful to an economy than preventing the death of companies that have proven themselves to be inefficient or, as in the case of Bancrédito of Costa Rica, not essential or even needed."

Do you need information about the financial sector?

Request more information:

this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423

More on this topic

State Bank to Remain Intervened

May 2018

An agreement was reached to extend for 90 days more the intervention of Banco Crédito Agrícola de Cartago, while discussion takes place of the plan that would allow its absorption by another banking entity.

The National Council of Supervision of the Financial System decided on May 22 to extend for three more months the intervention of Bancredito, whose status, according to the authorities, continues to be of "financial infeasibility". 

End of the Road for State Bank

March 2018

In Costa Rica, the financial supervisor recommended the Congress to apply the state guarantee to Bancredito and merge it with another public banking entity.

Luis Carlos Delgado, president of the National Council of Supervision of the Financial System (Conassif), "...

Costa Rica: Bancrédito will No Longer Be a Commercial Bank

May 2017

The state bank will stop performing financial intermediation activities and, despite proof of its inefficiency, will be converted into a promotion and development bank.

From a statement issued by the President of Costa Rica:

The Governing Council, meeting at a shareholders meeting at Banco Crédito Agrícola de Cartago (Bancrédito), decided to accelerate the transformation of that entity into a promotion and development bank, by executing a plan that would allow the entity to gradually cease to perform financial intermediation activities before December 31, 2017.

Changes in Banking Regulations in Costa Rica

February 2014

Tighter analysis of customers and better control of risk in lending are part of the changes that are being prepared by the financial regulator.

In 2013 the General Superintendence of Financial Entities (Sugef) began a process of regulatory changes for banks to continue during 2014. Tighter analysis of customers and better control of risk when granting loans are some of the changes being contemplated.

 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

Tailor made software for construction companies

O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...

Stock Indexes

(Apr 6)
Dow Jones
S&P 500


(Jun 22)
Brent Crude Oil
Coffee "C"