Guatemala's Banking Superintendent submitted new regulations for approval before the Central Bank's Monetary Board.
Edgar Barquín, head of the Superintendence, explained that the proposed regulation intends to comply with Basel accords and strengthen risk-based supervision.
In the past 12 months, banks have invested 20% more in securities.
From January to September 2008 they invested $3.228 million, whereas $3.872 has been invested so far 2009, according to data from the Banking Superintendence.
Edgar Barquín, head of the Superintendence, told Prensalibre.com: "Banking deposits have increased but banks are granting less loans, as they are more prudent now. Instead, they invest these resources in securities".
In the last twelve months, fixed-term deposits and savings accounts have shown an increase of 16.1%.
According to data from the Bank of Guatemala, up to and including May 14, there were $5.62 billion (Q45.548.billion) in fixed-term, regular and special savings account deposits.
The credit rating company Fitch warned that rising interest rates and out-of-control inflation could cause debtors to default on their loans.
Maurice Choussy, executive director of Fitch Centroamérica, said the rise in inflation is affecting the ability to pay for both families and businesses.
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