The coronavirus has left an economic impact in several countries. For this reason, some governments are developing exceptional measures to mitigate its effects. For example, the suspension of tax and mortgage payments to lessen the economic pressure on small businesses and households.
In the United States, interest rates were reduced to almost zero and a US$700 billion stimulus program was launched in a bid to protect its economy, says Mario Miranda, director of finance at MonederoSMART.
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."
Between 2015 and 2016, transactions via electronic banking grew by 22%, while the issue of checks continues to decline.
From a statement issued by the Costa Rican Banking Association:
9 May 2017. The ease of making secure transactions with just one click, from the house, office or even cell phone,therby avoiding having to go anywhere or queue up, is making more and more users of banking entities, along with the Costa Rican Banking Association (ABC), prefer electronic banking.
Fitch foresees returns for Nicaraguan banks, however the result will not be as good for the banking industry in Panama, Guatemala or El Salvador.
From Fitch's report "2017 Outlook: Central American and Dominican Republic Banks"
The 2017 Central American bank rating outlook is stable for 2017, reflecting slight changes in growth and financial performance, according to a new Fitch Ratings report. The evolution of some factors, such as interest rates and private investment, or the emergence of events that could increase reputation risk could alter the banking outlook.Stable Rating Outlook: The ratings of most banks in the region have a stable outlook, reflecting the fact that their credit profile will not undergo significant changes in Fitch's base scenario.Movements in the ratings will be derived mainly from adjustments in ratings of parent banks or sovereign ratings, or of unanticipated events.
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.
The company Financiera de Inversión has received authorization to start operating as a private bank in the country.
With capital of $15 million, the company which has so far only operated in the financial segment will start providing banking services under the brand Banco INV, and will be subject to the regulation required of participants of the banking system.
Six new institutions want to join the 94 that make up the banking center which operates in the country, whose assets grew by 35% in the last three years.
Data from the Superintendency of Banks indicates that "... the banking center currently has 94 entities: 2 official banks, 18 Panamanian banks with a general license; 29 foreign banks with a general license, 29 internationally licensed and 16 representative offices.
The drop from 20% to 6% in the annual growth rate of bank lending to companies as of June, illustrates the direct link between confidence in the future and demand for business loans.
Cathay Bank estimates that slower growth in bank loans for business activities is due to the uncertainty regarding the near future of the economy. The possibility of a tax reform, coupled with the lack of action by the government to reduce spending and increase public investment are factors that are raising questions and forcing companies to delay projects.
Compared with other economies, the indicator measuring non-payment in the banking system is relatively small, with marked fluctuations in different sectors.
An article on Prensalibre.com reports that according to the Superintendency of Banks (SIB), the indicator for defaults in the Guatemalan banking system "went from 1.55% in May last year to 1.43% in the same month this year."
Arguing an attempt to control credit growth in dollars, the Central Bank will apply a reserve limit of 15% to banks that receive lines of foreign funding in that currency.
The banking sector has opposed the measure, asserting that it will result in an increase in the cost of credit in dollars, affecting the business sector, especially exporters and importers who normally resort to credit lines in dollars to finance their operations abroad.
Authorization has been given to Grupo Prival de Panama to complete the transaction to acquire 100% of the shares of Banco Bansol in Costa Rica.
The financial group of Panamanian origin which also now operates in El Salvador, in addition to Panama, and its incursion into Costa Rica aims to strengthen its process of regionalization. Prival sought approval from the appropriate authorities in October 2014 for the purchase of Bansol.
Banking, energy and industry are the sectors where Gazprombank, the largest private bank in Russia, are exploring opportunities to finance projects in Guatemala and Latin America.
Representatives from the Russian company visited Guatemala to analyze the market and consider potential investment opportunities in sectors such as banking, energy and industry.
In the past two years, over $2 billion worth of financing for large enterprises in Guatemala has been provided by large Colombian banks.
The main participant is Bancolombia, which in 2010 and 2011 was involved in syndicated loans for over $1 billion, including the acquisition of Deorsa and Deocsa by Britain's Actis, the extension of Ingenio Magdalena and financing for Cementos Progreso and Cabcorp.
Business loans of more than $ 640.000 pay between 8% and 12.5%.
Business loans of less than $ 640,000 pay considerably more, between 11.3% and 34.4%.
The information comes from the monthly report generated by the Bank Superintendence of Guatemala, which for the first time includes interest rate information filtered by credit portfolio, economic activity, type of credit and rank.