Following the approval of the Bitcoin Law in El Salvador by the members of the Legislative Assembly, which creates a legal framework that recognizes this digital currency as legal tender in the country, the IMF warns that financial and legal risks have arisen.
The National Assembly of Panama approved in third debate a bill that regulates the service of information on the credit history of consumers.
The legislative plenary approved in third debate initiative 424, which modifies Law 24 of 2002 related to this registration system in the Panamanian Credit Association (APC), in order to create a data model or credit information that is fair and balanced between financial agents and credit clients, the Assembly informed.
The official notice obliging all entities of the country's financial system to provide the tax authorities with information on the bank accounts of all their foreign clients was published in the Gazette.
Fitch Ratings agreed to change the perspective of the region's banks from stable to negative, arguing that the current health crisis will affect financial institutions in all countries.
Considering the measures that countries have adopted in the last 15 days in economic matters, following the spread of covid-19, Fitch expects that there will be a decrease in the issuance of loans.
Increased demand for credit and more requests for loan restructuring is part of what the covid-19 crisis has brought to Guatemala's banking sector.
According to representatives of the Guatemalan Banking Association (ABG), the spread of covid-19 and the restrictive measures that have been decreed in the country are affecting the liquidity of companies, many of which have no income and must use credit to pay their bills.
The impact of the coronavirus crisis on the financial sector in Central America is expected to be felt mainly in services related to stock brokerage and investment advice, where a drop is expected.
The "Information System for the Impact Analysis of Covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the degree of impact that the crisis will have on companies according to their sector or economic activity, during the coming months.
Arguing that there were arbitrariness and that due process had not been complied with, former representatives of Financiera de Occidente S.A. decided to file a legal appeal following the suspension of the entity.
The Central Bank of Costa Rica has increased to $27 million the minimum amount of capital required by banks to operate, and to $5 million the minimum amount for financial companies.
Yesterday the Central Bank agreement which establishes the changes was published in the official newspaper, La Gaceta, The minimum operating capital for private banks increased by 5.8%, rising from $25.6 million to $27.1 million.In the case of financial companies, the increase was from $5.1 million to $5.4 million.
Increased operating costs because of risk controls imposed by the US have led to correspondent banks avoiding working with small banks.
Maintaining small structures at the same time as paying high costs in order to meet the standards required internationally, primarily in the United States, is no longer viable for banks who want to remain profitable.
The margin of financial intermediation in colones fell by 1.3% and stood at 7.1%, while a rate of 3.5% was recorded dollars.
From a statement issued by the Costa Rican Banking Association:
31 March, 2016. The Costa Rican Banking Association (ABC by its initials in Spanish) presents data on the performance of the Financial Intermediation Margin (MIF by its initials in Spanish) between 2008 and 2015, showing that this was reduced at the end of last year, both in colones and dollars.
The Superintendency of Banks in Panama has extended by 30 days the measure to take administrative and operational control of Banca Privada D'Andorra which was decided in March.
From a statement issued by the Superintendency of Banks of Panama:
Through SBP Resolution No. 0063 of April 7, 2015 extension has been given to the SEIZURE OF ADMINISTRATIVE AND OPERATING CONTROL OF PRIVATE BANKING OPERATIONS OF D'ANDORRA (PANAMA), SA, for a period of thirty (30) days.
The number of companies or individuals raising money from investors without authorization from the Superintendency of Banks now totals 73.
Since 2000 to date 73 companies have been reported as raising money from investors without a proper license to operate in the country.
"Although fines for exercising banking functions without the appropriate license can reach up to $1 million and the Financial Offences Act establishes penalties ranging from three to five years for anyone who collects money in a massive and regular manner from the public financial without proper authorization from the competent authorities, the SBP list continues to grow", reports Capital.com.pa
Information will be available on credit cards, secure electronic banking, savings accounts and debit cards, credit and guarantees, and related procedures.
A statement from the Costa Rican Banking Association (ABC) reads:
First Financial Virtual Library
Banking system launches new information tool for users
- The Initiative aims to increase the levels of transparency between banks and consumers.
The financing company is registering with the regulating authority the creation of a financial group made up by the financing company, an insurance seller and a leasing company.
Silvio Lacayo, Desyfin manager, said the proceedings were initiated in 2011 with the Superintendent of Financial Institutions and they are awaiting final approval by the agency.