Because of decreasing demand for credit since April last year, banks in the Nicaraguan plaza are filling up with money they can not place in the market.
According to estimates by the Nicaraguan Foundation for Economic and Social Development (Funides) based on official figures, so far this crisis has boosted the liquidity of banks, increasing the proportion of available money that financial institutions have with respect to their obligations to the public, going from 31.76% reported in March 2018 to 46.73% recorded in May this year.
At the end of 2018, credit granted to the business sector in Guatemala registered a 7% increase over December of the previous year.
Figures from the Superintendence of Banks specify that up to December 2018 the credit portfolio reached $23.064 million and investment in securities $11.324 million, which compared to 2017 is equivalent to 6.8% and 11.3% increases, respectively.
Up to the ninth month of 2018, El Salvador's gross loan portfolio totaled $12.342 million, 5% more than the same month last year.
According to representatives of the Salvadoran Banking Association (Abansa), between September 2017 and the same month of 2018 the gross loan portfolio increased from $11.764 million to $12.342 million.
Regarding the performance of the banking sector, Marcela de Jiménez, executive director of Abansa, explained to Elmundo.sv that "... Bank arrears continue to fall. Loans and installments with more than 90 days in default reached $236.9 million, representing 1.92 % of the credit portfolio, 0.6 percentage points less than in September last year. Meanwhile, bank deposits increased 5.9% annually in September and totaled $12,084.5 million, $668.7 million more."
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.
As of February 2018, banks in the system had assets totalling $41,343 million, which is 7% higher than the $38,655 million reported in the same month in 2017.
The Superintendency of Banks in Guatemala reported that at the end of February 2018, the bank's national currency assets totaled $29.921 billion, and assets in foreign currency amounted to $11.422 billion.
In 2017, the International Banking Center recorded profits of $1.797 billion, 18% more than the $1.594 billion reported in 2016.
The Superintendency of Banks in Panama reported that "... The CBI 's profits increased by 17.9% in the month of December, supported by a reduction in expenditures and an increase in income from financial operations."
Fitch Ratings reports growth in non-performing loans by medium-sized Panamanian banks, influenced by a less dynamic but still benign operating environment.
From a report by Fitch Ratings :
Medium Panamanian Banks Adjust to Less Dynamic Environment
Defaults Growing but Adequate: Morosity in medium sized Panamanian banks rated by Fitch Ratings has grown and is influenced by the less dynamic but still benign operating environment. In general, banks have good capacity to manage their major defaults and Fitch does not foresee an additional deterioration in loans in the short term. The most arrears, corresponding to Banesco, is due in part to the performance of its Dominican subsidiary.
In disagreement with the only proposal presented so far, depositors of the intervened Balboa Bank & Trust are preparing their own offer to acquire the bank.
Starting December 22nd 2016 a new rule applies that prevents banks in Costa Rica from deciding how much of their capital they want to hold denominated in dollars and how much in colones.
In an attempt to gain more control of the risk involved in foreign exchange transactions by banks and their impact on the exchange rate, the Central Bank has changed the rules for foreign exchange cash operations, forcing banks to change the composition of their assets so that the proportion denominated in dollars is equal to the proportion of assets in that currency.
Up to September 2016 annual growth in the loan portfolio of the banking system decreased from 23% to 20%.
From the Central Bank´s financial report, September 2016:
Credit growth declined. In September 2016, gross loans totaled 136,803.4 million cordobas, with a growth of 20.0 percent. This represents a decrease of 3.1 percentage points compared to the figure seen in September 2015.Meanwhile, real credit growth declined by 3.9 percentage points compared to that observed in September 2015 (19.8% vs 15.9% 2015 2016).The gross loan portfolio of the financial system remains active with the most weight in the balance of the financial system (66.0%).
Up to the month of August the balance of the loan portfolio in the banking system amounted to $47.7 million, 9.9% more than in the same month in 2015.
Although the latest official census figures on constructions were not very promising, this sector continues to lead the growth of credit in Panama.Up to August, credit granted by banks to the construction sector recorded its second highest rate of growth, with 16%, preceded only by credit for industrial activities, which grew by almost 20% during the period in question.
The International Banking Center reported $118 billion in assets in 2015, $10 billion more than was recorded in 2014.
In 2015 the International Banking Center in Panama reported total assets in the order of $118,477 million, 9.2% more than the amount reached in 2014, when the figure reached $108,419 million, according to figures from the Superintendency of Banks in Panama.
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.
In the first half of the year profits in the banking system amounted to $900 million, a variation of -6.2% compared to the profits generated in the same period in 2013.
The Superintendency of Banks of Panama reported that this reduction is due to the loss of up to 14% in other income. In the case of Panamanian banks, the situation is more favorable, as they increased their profits in comparison to the same period of 2013 by 10.5%.
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 "...