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".
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), "... confirmed to Nacion.com that (last week) they approved, in a definitive manner, the final report on the intervention of Banco Crédito Agrícola de Cartago (Bancredito), which concludes that the entity is no longer financially viable."
Business management is the resource which determines the success or failure of a business, and the quality of that management determines, unfailingly, the market.
EDITORIAL
In Costa Ricaastate run bankand anagricultural cooperativehave once again been rescued from insolvency and the mismanagement of their managers, using, as it would not have been possible any other way, money belonging to taxpayers.
State Banks in Costa Rica have a portfolio of over 2,300 properties from the repossessions made because of mortgage defaults.
Nacion.com reports that "... the banks, Banco Nacional, Banco de Costa Rica, Banco Popular and Bancrédito had 2,336 properties in their possession, which represents a 35% increase compared to the same period in 2012." Of that total, Banco Nacional has the largest number of foreclosed properties with 60%.
Costa Rican Commercial banks closed 2012 with net income of $360 million, which is a 30% increase in nominal terms compared to 2011.
Those who reported the highest earnings were public banks, meanwhile private banks reported the highest growth last year in 2012, closing with $111 million, 32% higher than 2011. (This amount does not including the banks results from the banks Citibank, General, Bansol and Improsa).
In 2009, banks in the country had net earnings of $190,32 million, 34% less than in 2008.
Data from banking superintendent SUGEF shows that state-owned banks fared worse than privately-owned ones. The first suffered from a 37% reduction in earnings, while the latter 28%.
"Almost all the banks earned less. The only one earning more was Citi", reported Elfinancierocr.com.
From January to November 2009, earnings at state banks reached $125 million, 28.4% less than the same period of 2008.
Banks blame the economic crisis, which caused a sharp contraction in credit.
"Data from the Banking Superintendence (Sugef), also points to other factors, like increased administrative expenses, and in some cases, less earnings for services", reported Prensalibre.cr.
In the first quarter of 2009 state bank profits fell by 25% when compared to the same period in 2008.
According to the Superintendent of Financial Institutions (SUGEF), the opposite happened with private banks, which increased their profits by 12% over the same period.
Patricia Leitón reported statements by Guillermo Quesada, Bancrédito manager, in her article in Nacion.com: "The results for state banks were influenced by an increase in administrative costs, particularly due to increased spending on staff. In state banks, real spending on personnel rose by 4.7% during this period and it fell by 5.4% in private banks."
After being capitalized, the three state banks - Bank of Costa Rica, The National Bank and Bancredito - reactivated all their lines of credit.
Nacion.com reports: "The Bank of Costa Rica has issued some $14 million (¢8 billion colones) since December 23.
At Bancredito, Arnoldo Trejos, Commercial sub manager, reported that they are currently formalizing the requests that were accumulated during the last few months of 2008.