Private Banks Asked to Remove Credit Restrictions

The sector's growth has been hampered by the ceilings imposed by the Central Bank of Costa Rica on the growth of the credit portfolio.

Wednesday, June 19, 2013

The BCCR last February set a limit on growth of 12% for the private financial sector, in order to remove excess colones that had to be used to maintain the status of the dollar.

Jimmy Hernandez, general manager of Cathay Bank, said their original budget was growth of $45 million however, because of the limitations of BCCR they had growth of $15 million. He added that this restriction means they will not open branches this year nor hire staff, but expect to resume growth soon.

"The restriction has not been justified, none of the reasons given for the restriction are present today. We do not know why the Central Bank insists on that restriction, so there is no optimism (in the sector)," said Fernando Víquez, general manager of Banco de Soluciones (Bansol).

¿Busca soluciones de inteligencia comercial para su empresa?

More on this topic

Costa Rica: Credit Restrictions Eliminated

August 2013

The Costa Rican Central Bank has decided to remove the limits on credit growth both in dollars and in colones, due to the weak economic growth facing the country.

The announcement came during the presentation of a review of the Macroeconomic Program 2013-14, where it was revealed that growth projections for that period are 4%, while inflation will be 5%.

Banks Adjust to Costa Rica Credit Crunch

February 2013

The ceiling on the growth of the loan portfolios imposed on Costa Rican banks has forced financial institutions to adjust their lending strategies. reports that "The Central Bank of Costa Rica (BCCR by its initials in Spanish) established a ceiling of 9% on the growth that credit loans might have between February and October this year. In 12 months, the figure will rise to 12%. "

Credit in Costa Rica Up 15%

July 2012

The economic dynamism of the last half of 2011 and the first of 2012 has generated more demand for loans, particularly in dollars.

Dollar loans reported an increase of 16% (17% excluding the currency effect), while for loans in colones the increase was 14%.

Mario Rivera, manager of the Banco de Costa Rica, told that the preference for dollar credit is being driven mostly by companies with strong links to international trade (import and export) and the domestic demand for imported goods.

Bank Loans with Minimal Growth in 2012

November 2011

The Costa Rican banking sector is not predicting strong growth in credit placement for next year.

According to Jimmy Hernandez, manager of Cathay Bank, it will be a year of "great caution" for the industry, not exceeding 10% growth in credit placement.

When meeting with the press the executive said that "...2012 will not be the same as 2011 and that growth in credit placement could reach a maximum of 10%, i.e.