As a result of the changes made by the Assembly in Panama regarding the total payment of the resources placed on deposit in cases where the banks are in the process of liquidation, the Banking Association is asking for the construction of consensual public policies.
The plenary session of the Assembly, after correcting the formulations made to the document by the Executive, passed in third debate Project 308, which adds provisions to Decree Law 9 of 1998 on the Banking System in Panama, the legislative body informed last September 30.
Suspension of contracts, uncertainty about the economic future and reduction of salaries, are some of the factors that have affected the banks in Panama to place fewer loans in this context of health crisis.
The amount of new loans granted by Panamanian banks was $589 million during May this year, a 26% reduction compared to what was reported in April 2020.
At a regional level, nearly 16 million people are looking to purchase financial services online. Of this group of consumers, approximately 11% are exploring options for acquiring a credit card.
The interactive information system developed by CentralAmericaData, monitors in real time the changes in consumer habits in all markets of the region, with fundamental information to understand the new commercial environment that has emerged in an accelerated manner.
In the scenario of the health crisis and the decreed quarantine, it is reported that as of April, the balance of savings deposits of individuals amounted to $5,283 million, 15% more than the same month in 2019.
At the beginning of the year the authorities of the Central Bank of Honduras (BCH) estimated that for this year deposits in the financial system would increase by about 8%, however, this figure has almost doubled.
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.
In Guatemala, the business group of South American origin acquired 40% of the shares still owned by BAM Financial Corporation, and consolidated 100% of the assets of the Agromercantil Holding Group.
Directors of Bancolombia reported that the company will begin the process of authorizations to regulatory bodies and that in the coming days will provide details on the price of shares, according to the contractual rules between the parties who closed the negotiation.
In order to preserve savings and the stability of the national banking system, the Monetary Board decided to suspend the operations of Banco de Credito, an entity that represents 0.2% of the total assets of the local banking system.
The Superintendence of Banks will have to communicate to the general public the mechanism to be used to make operative the management of the deposits constituted in the Banco de Credito, informed the Central Bank.
In Guatemala, companies report to have lost several credit opportunities because the bill presented to Congress in 2015 has not yet been approved.
The bill that is being analyzed in Congress and is in third reading since May 2016, establishes the legal framework for entities such as banks and financial companies to include leasing in their product portfolios.
The Honduran Banco Atlántida has received authorization to operate in the Nicaraguan financial market.
As of November 15, the Honduran bank will have 180 days to comply with the requirements in the law for banks and financial institutions.
"...Through a resolution published in La Gaceta on November 15, the board of directors of the Siboif made official the authorization for the constitution of a banking corporation under the name: `Banco Atlántida de Nicaragua S.A. or simply Banco Atlántida Nicaragua or Banco Atlántida'."
On October 12 and 13 representatives from the banking and financial sector will be gathering together in Panama City to discuss issues relating to regulation, business and investment.
The International Finance Summit is an event being organized by the Banking Association of Panama and will be held at the Hotel Trump Ocean Club Convention Center.
A bill is being discussed in Congress which establishes a legal framework so that banks and financial institutions can include leasing in their product portfolios.
From a statement issued by the Congress of Guatemala:
Members of the Legislative Commission on Economy and Foreign Trade, chaired by Deputy Aristides Crespo Villegas, met today with the goal of favorably ruling on bill 4896, which includes providing legal certainty and regulating leasing activities in the country, known as the "Leasing Act".
The new entity, founded with 100% local capital, has started operating two branches offering products such as savings and checking accounts, personal loans, mortgages and corporate lending.
The entity started with an initial capital of $60 million, provided entirely by Salvadoran investors, as reported by representatives of the bank when they started the license application process.
Services in Banking, finance, logistics, gourmet foods and beverages will be offered by Panamanian businessmen in Peru, on 15 September.
A trade mission will visit the country on 15th of September for business and institutional networking and to take advantage of the FTA between the two countries.
From a press release by the Ministry of Commerce and Industry of Panama:
Procedures and requirements. Specifications, terms and bans on financial correspondents.
From a statement from the Central Reserve Bank:
Standards approved for providing services through financial correspondents
Banks, cooperative banks and savings and loan companies can now carry out operations and provide services through financial correspondents acting on their behalf, which has been approved by the Technical Rules for Making and Giving Services Operations by Means of Financial Correspondents Standards Committee of the Central Reserve Bank.