Up to July 2019, the credit portfolio of the banks of the national system totaled $54.328 million, 2% more than what was reported in the same month of 2018, a rise that is explained by mortgage and personal loans.
Total domestic credit increased by 2% compared to the same period in 2018. The sectors driving this higher growth in absolute value are associated with personal banking products, especially in the mortgage (5.2%) and personal loans (5.6%), informed the Superintendency of Banks of Panama.
Until November 8, 2019, the operational and administrative control of AllBank, Corp. was extended, an entity that was intervened because its " shareholders did not attend in time and opportunity the requirements of the corrective actions."
Since April 2018 the total deposits of the National Banking System have been decreasing every month, but in August and September the trend seems to have reversed, as in both months there were increases.
According to data from the Superintendence of Banks and Other Financial Institutions (Siboif), between July and August a $39 million growth in bank deposits was reported.
Up to July 2019, gross loans in the country totaled $12,840 million, 5% more than the amount reported in the same month of 2018.
With respect to the assets of the banking system, data from the Superintendence of the Financial System (SSF) detail that up to July of this year totaled $18.558 million, which represents a $1.016 million increase when compared to the balance of the same month in 2018.
The Superintendence of Banks granted permission for Banco Atlántida, an entity of Honduran origin, to begin operating throughout the country under local supervision and regulation.
The constitution of Banco Atlántida in Nicaragua was authorized on October 24, 2017, but it was not until October 2, 2019 that the permit to operate in the financial system was published in La Gaceta.
Costa Rican authorities informed that Citi Global Markets and HSBC Global Banking will be the placement banks and financial advisors that will accompany the country in the process of issuance of securities and management of liabilities in the international market.
The issue that will be made at the international level is the one that was approved on July 16 through Bill No.
In Panama, the National Assembly approved in the third debate the bill that contemplates interest rate benefits for the purchase of homes for a value of up to $180,000.
Although the downward adjustments made months ago in the bank reserve and monetary policy rate do not yet appear to have had an effect on the loan portfolio in Costa Rica, banks expect credit to be reactivated soon.
Between March and June 2019, the credit portfolio of banks in the national system decreased from $54.857 million to $54.282 million, explained by the decrease in loans granted to the industrial sector.
Regarding the year on year variation of the credit portfolio, in June was reported a 3% increase over the same month in 2018, derived from the rise of the mortgage and personal loans sectors, informed the Superintendence of Banks of Panama.
On September 9, local authorities took operational and administrative control of AllBank, Corp, arguing that the group of "shareholders did not respond in a timely manner to the requirements of the corrective actions" that were instructed.
The results of the latest supervisions carried out by the Superintendence of Banks of Panama reflect a strong weakness in the health of the loan portfolio, which added to a fragile management of Corporate Governance, the institution reported.
The Cortizo administration approved a proposal that establishes that the government will assume 2% of the bank interest for the purchase of homes valued between $120,000 and $150,000, and in the case of real estate between $150,000 and $180,000, the exoneration will be 1.5%.
The Cabinet Council approved on September 3 the bill No. 044-19, which still has to be endorsed by the Assembly and seeks to increase coverage for the purchase of homes worth $180,000, informed the presidency of Panama.
On August 26, ABANK began operations in the country, a banking institution that emerged as a result of the acquisition of Banco Azteca's shares by Grupo Perinversiones.
At the end of June of this year and after the Superintendence of Competition accepted the request for concentration, Perinversiones S.A.
Since the beginning of the political crisis in the country, several banks have decided to close some of their service centers, and only during the first half of 2019 have 56 branches been reported closed.
In April 2018, the country plunged into a political crisis that has dragged the economy into recession. As a result of this problem, official figures indicate that 49 bank branches were closed last year and 56 more were closed between January and June 2019.
Implementing a mixed system of interest rates composed of a fixed one with a contract for a determined time and another variable agreed between the account holder and the issuer, is one of the proposals that are discussed in the Congress of Guatemala.
The proposal for two interest rates was presented by the Instituto de Investigación y Proyección sobre Economía y Sociedad Plural (Idies), before the Congressional Economic Commission, in charge of discussing the proposals for changes to Credit Card Law 5544.
The Central Bank announced that from August 12 it will reduce from 15% to 13% the legal reserve week rate in national currency.
From the Central Bank of Nicaragua statement:
Managua, August 07, 2019. The Central Bank of Nicaragua (BCN) reports that liquidity conditions are observed that favor the support of banking and monetary operations, which represents a change with respect to previous behavior.