The Monetary Board approved the changes to the Credit Risk Regulations, which were proposed by the Superintendence of Banks and seek to simplify the requirements for loans not exceeding $160,000.
In this scenario of economic crisis resulting from the outbreak of covid-19, the objective of the endorsed modifications is to favor SMEs and individuals to gain access to credit lines offered by commercial banks.
The rise in microcredits, consumer loans and the construction sector contributed to the 7% year-on-year increase reported in April 2019.
Data from the Bank of Guatemala show that between April 2018 and the same month of 2019, credit to the private sector in the country increased from $24.687 million to $26.534 million, which is equivalent to a 7.4% increase.
In Costa Rica a law proposal pretends to reduce by 50% the bank fees on loans for businesses and SMEs, as well as credits for social housing and lower class.
The law project, which was presented to the Congress by the representative, Yorleny Leon, aims to reduce fees in the formalization of bank loans, which currently range between 8% and 10% of total credit.
Up to May 2018, credit granted by Guatemalan banks to the private sector totaled $25.725 billion, 4% more than was reported in the same month in 2017.
According to figures from Banco de Guatemala, credit to the private sector up to May 2018 grew by 4.1% compared to the same month in 2017, rising from $24.611 billion to $25.725 billion.This increase was below the 8% increase recorded between the same months of 2016 and 2017.
Banco de Antigua has announced the acquisition of the microcredit portfolio of the G & T Continental entity, which will continue to focus on consumer and corporate areas.
G & T Continental Bank reported that the operation is due to a restructuring process to meet the new technological trends in the financial market.
In the last quarter of 2016, the total amount of transactions made through the network of banking agents grew by 26% compared to the same period in 2015, and the average amount per transaction increased from $99 to $118.
Data from theQuarterly Bulletin of Financial Inclusionby the Superintendency of Banks indicates that between September and December of last year, more than 7.8 million transactions were made, including deposits, withdrawals and credit payments made through the network of banking agents, 26% more than in the same period in the previous year.
The slow speed at which tasks are executed by civil servants means that the Development Banking System is still not working despite the urgent need of the productive sector.
The private sector is complaining that resources in the Development Banking System are still locked up because a member of the governing council has not yet been appointed .
The Minister of Agriculture, Luis Felipe Arauz, responded to the complaint noting that analysis has been completed of the three candidates for the post, and tomorrow approval "could" be given by the Governing Council for the appointment of the representative from the College of Economic Sciences.
The Guatemalan company G & T Continental has submitted an application to the Superintendent of Banks to change its current microfinance license to a general banking license.
From a statement issued by the Superintendency of Banks in Panama:
In compliance with Article 51 of the Banking Law No. 3-2001 and Agreement. amended by the Agreement No. 2-2006, we report:
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.
The Superintendency of Banks has authorized the start of operations of a new entity, Canal Bank, which will focus on financing SM's who are not bankarised.
With capital of more than $6 million the Canal Bank, part of the National Insurance Group, has started operations. The new company aims to compete in a market that has grown significantly in recent years.
The company will continue to focus its core business on the sector of small and medium enterprises.
The Superintendency of Banks in Panama granted the general banking license to the entity after it met the requirements under the law which included "... having a minimum capital of $10 million and meeting all requirements of the banking regulator."
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
Banco Compartamos has announced the start of operations in Guatemala through a new subsidiary.
The offices of Compartamos SA are located in the departments of Quetzaltenango (Coatepeque and Quetzaltenango) Retalhuleu (in the town of the same name) and Suchitepequez (Mazatenango).
With this operation, Compartamos, S.A.B., de CV takes another step in its international expansion.
Banco Compartamos plans to attract Guatemalan customers who have previously lacked access to traditional banking.
The company which specializes in Mexican microfinance plans to expand its operations in different countries throughout the region, including Guatemala.
The proximity to Mexico and the characteristics of potential customers are some of the reasons behind the decision to enter this market.
The Nicaraguan Association of Micro-Finance Institutions (ASOMIF) has offered to assist in the recovery of Banex.
Alfredo Alaniz, ASOMIF's executive director, commented that in meetings held with Nicaragua's banking regulator and central bank authorities those present agreed on the need for the institution to continue its operations whether as a bank or as a finance company.