The microcredit portfolio in Latin America and the Caribbean is worth over $40 billion, is awarded by more than 1,000 institutions, and reaches more than 22 million customers.
From a statement issued by the Inter-American Development Bank (IDB):
A new report documents significant expansion of microcredit in Latin America and the Caribbean
GUAYAQUIL, Ecuador - Microcredit in Latin America and the Caribbean remains strong and continues its expansion of the last decade, experiencing an increase in their number of customers, a variety of institutions and a downward trend in interest rates according to new data released here today by the Multilateral Investment Fund (MIF), a member of the IDB Group.
Analysis by Fitch Ratings projects that banks in the region will maintain strong balance sheets and have stable profitability in 2014.
Excerpted from Fitch Ratings:
Differential Growth and Opportunities: Low financial depth, in most systems, continues to provide significant opportunities for expansion of bank balance sheets; although this is limited by low average income levels.
Local financial groups are interested in negotiating with the U.S. company in order to acquire the consumer banking operation in Nicaragua.
The consumer banking business that will be left behind by Citigroup could return to the hands of Central American companies, as some have expressed interest in acquiring the operation in Nicaragua, although it is not yet known who the interested parties are.
The group has announced that as part of its long-term strategy it will withdraw from the consumer banking business in Costa Rica, El Salvador, Panama, Guatemala and Nicaragua.
Extract from a statement issued by Citigroup:
Citigroup today announced strategic actions to accelerate the transformation of its Global Consumer Banking (GCB) to focusing on those markets where it has the largest scale and growth potential.
Banco Industrial has announced that it is prepared to start operations in Panama's financial center in the first quarter of 2015.
The Bank which is of Guatemalan origin, and which already has a presence in Honduras and El Salvador, is preparing to open its offices in Panama City, driven by the economic growth there.
Diego Pulido, manager of the company, told Elperiodico.com.gt "...
For the last four years the loan portfolio of the Salvadoran financial system has been growing at an average rate of 3.5%, below the 11% growth average in the rest of the region.
A report produced by the rating agency Moody's notes that growth in El Salvador's financial sector has been stagnant since 2010, as the total loan portfolio has not achieved growth rates above 3.5% per year.
In the first half of 2014 banks assets in the country increased by 12% compared to the same period in 2013, while the amount of loans granted grew by 11%.
Data from the Superintendence of Banks of Guatemala reveals that the profits made by banks in the same period grew by only 0.87%.
Federico Martínez Linares, CEO of Banco G & T Continental told Eleconomista.net that "...
With the implementation of the Standardized Bank Accounts starting July 1st banking transactions will be streamlined.
From a statement issued by the Bank of Guatemala (BANGUAT):
Standardized bank accounts for Guatemala will come into effect, firstly, to standardize the numbers of current and savings accounts, which are commonly used to transfer funds electronically at the interbank level, through internal and external systems in the country.
Up to February this year the balance of loans granted by the 18 banks registered in the country amounted to $15.8 billion.
The loan portfolio grew by 11.7% in Guatemala in the past year as reported by the Superintendency of Banks of Guatemala (SIB), a figure that confirms the growing economy.
"The Superintendency of Banks of Guatemala (SIB) reported that banking sectors loan portfolio totaled approximately $15.8403 billion as of February this year. The figure represented an increase of 11.7% compared to the amount reported in the same month in 2013."
Banco Industrial will be investing $2.5 million in opening six new branches in El Salvador.
Banco Industrial de Guatemala has announced the opening of six new branches in El Salvador, in which will it invest $2.5 million. The first three branches will open before the end of the first quarter of 2014 and will be located in Sonsonate, San Miguel and Plaza Mundo.
The Guatemalan bank G&T Continental has announced the opening of two new branches in the banking center of Panama.
The G & T Continental Bank of Guatemala plans to open two new branches in Panama in 2014. The company already has two other branches in the country.
Amador Carballido, development manager of G & T Continental explained that "in this country, with 3.8 million people, we estimate that there are more than five thousand customers."
Guatemalan banks are now allowed to invest in securities issued by private domestic firms in the foreign market.
The Monetary Board (JM) has approved an amendment to an article of the Regulations of the Law on Banks and Financial Groups, allowing banks to invest in corporate bonds that are issued by national companies and which are traded in foreign markets.
The credit portfolio grew by 9.8% in 2013, while assets of supervised banking institutions increased by 12%.
During 2013 the bank granted a larger amount of loan, as its portfolio grew by 9.8%. While the loans in 2012 totaled $ 9.139 million in 2013 were $ 10,043 million, a difference of $ 904.3 million.
With regard to assets, these increased by 12% going from $25,162 million in 2012 to $28,176 million in 2013.
It has been announced that from March Costa Rican banks will be able to allow their customers access to the Central Interconnected System of Payments.
From a press release by the Central Bank of Costa Rica:
A new service has been developed called 'Pagos al Exterior (PEX)' (Foreign Payments), which will allow individuals and legal persons resident in the country, to send and receive transfers of funds to and from accounts in a financial institution located in El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic. The aim of the service is to provide a fast and secure technology platform for processing commercial payments and remittances in the region.