Arguing an attempt to control credit growth in dollars, the Central Bank will apply a reserve limit of 15% to banks that receive lines of foreign funding in that currency.
The banking sector has opposed the measure, asserting that it will result in an increase in the cost of credit in dollars, affecting the business sector, especially exporters and importers who normally resort to credit lines in dollars to finance their operations abroad.
Banks authorized by the Superintendency of Securities may perform operations of clearing and settlement of securities in the stock market, which until now has only been done by brokerage houses.
With this modification in the regulations banks may provide more support for trading by its investors, providing the service of clearing and settlement of securities transactions which previously were only handled by brokerage houses.
The bank BAC San José de Costa Rica has issued $210 million at a 7-year term securitizing the flow of deposits received from abroad in corporate accounts in the form of remittances or payments for exports or imports.
Although the bank did not specify the interest rate for the issue, Gerardo Corrales, general manager of the company, told Elfinancierocr.com that "... it is a fixed return."
The scare liquidity of colones explains the lower growth of loans in this currency, while credit growth in dollars continues to lose strength.
Added to the diminished liquidity in colones putting downward pressure on credit growth in that currency, is uncertainty at enterprise-level over recent changes in the exchange rate and lower credit demand for real estate projects, power generation and tourism, as explained by bankers to Nacion.com.
Credit histories of businesses and individuals will be more thoroughly reviewed, as well as their actual repayment capacity.
"We want entities to analyze peoples's debts with everyone, because they may have a loan here and there, and in the end owe millions," said Javier Cascante, chief of the General Superintendence of Financial Entities (Sugef).
For the volume of assets and loan portfolios they manage, cooperatives together make up the fourth largest financial operator ivn the country.
In Costa Rica, the 30 cooperatives under the supervision of the Superintendent of Financial Institutions (Sugef) exceed in value the assets and loan portfolio of the "private bank BAC San José and are below the banks, Banco Nacional, Banco de Costa Rica and Banco Popular which are funded by public capital. "
The government of Costa Rica is promoting a legal reform that would transfer the cost of financial supervision to banking institutions, insurance companies and pension operators.
The legal amendment was included in the Bill for the Efficient Management of Public Finances already sent to the Legislature.
So far, "the Central Bank is funding 80% of the operation of the Superintendent of Financial Institutions (Sugef), the Superintendent of Securities (Sugeval), the Superintendent of Pensions (Supen) and the Superintendent of Insurance (SUGESE)," reported Nacion.com.
The price of the dollar against the Colon has again started to fluctuate, after having spent several weeks at a relatively stagnant level.
In the last two weeks there has been a slight rise, of about six colones, at the banks exchange desks.
However, this rise has not appeared the way it normally does, ie first in the Monex wholesale market, where trading banks and financial institutions do business, and then in the exchange rate offered to the end consumer at exchange desks.
Before October 1st, the financial company will close its 16 stores and move those services to Credomatic's 'Red de Pagos' and BAC San José.
"Our business and commercialization model does not require our own points of sale. We are selling loans directly through points of sale of our commercial partners", explained Patricio Alemparte, General Manager of GE Money Costa Rica.
The balance of credit cards increased by 44% in 2008 but it is only expected to grow by half in 2009.
The different credit card companies are preparing for a year of lower growth relative to 2008.
According to the article in elfinancierocr.com, the economic crisis and unemployment have led issuers to take steps to avoid increases in delinquencies, which include: "Being more careful in issuing new cards, tightening the analysis of the customer's capacity to pay, offering to buy credit card balances, making payment arrangements, agreeing to raise the minimum earning level and lowering the amount of indebtedness."