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 Costa Rica, greater banking control and the increased presence of organized crime explain the 58% increase in suspicious transaction reports in 2018 over 2017.
In the last two years, Suspicious Transaction Reports (SARs) submitted by banks to the Costa Rican Drug Institute (ICD) increased by 58%, from 320 in 2017 to 507 in 2018.
Guillermo Araya, director of the ICD, explained to Nacion.com that "...
From 2018 an agreement will be in effect on the exchange of financial and tax information of accounts of Argentines in Panama and of Panamanians in the South American country.
From a statement issued by the Federal Public Revenue Administration of Argentina:
Starting next year bank account information will be accessible
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.
In 2016 entities in the banking system managed to increase their assets by 4% and their loan portfolios by 8% compared to 2015.
The annual report by the Superintendency of Banks in Panama includes the main results for the banking center and the banking system during 2016.
The report states that"...Credit to the private sector remains favorable in the retail banking segment and corporate credit in the interim construction segments.Trade credit has a lower growth rate due to reductions in the Colon Free Zone. "
Although profitability of the entities is adequate, Fitch Ratings is not ruling out pressure on performance because of increased spending on credit provisions and lower growth.
From a report by Fitch Ratings, III quarter of 2016:
Concentrated financial system has adequate profitability and capitalization in Regulatory situation in process of strengthening
Companies that make or receive international transfers for amounts of over $50,000 per transaction will have to indicate the origin of the funds.
Banking entities have reached an agreement to amend theSelf-RegulationRulesfor Monitoring of International Transfers to Prevent Money Laundering and Terrorist Financing. The amendment was approved in October 2016, and banks will have to start implementing the new measures in January this year.
As part of an audit plan which will start this year and will include access to banking information, the tax authority will be verifying transactions of real estate sales.
With its 2017 audit plan the Superintendency of Tax Administration is preparing to use for the first time a law that authorizes it to access taxpayer's banking information when required.
The union reports that in 2016 profits fell by 11% compared to 2015, mainly due to funding abroad becoming more expensive and payment of the tax for security.
The Salvadoran Banking Association (Abansa) has reported that in 2016 banking system profits were $139.9 million, less than the $155.8 million generated in the previous year.
The Superintendency of Banks is working on an update of the regulation on credit risk management and a new regulation of corporate governance for insurers.
Jose Alejandro Arevalo, head of the Superintendency of Banks (SIB), told Dca.gob.gt that"... in the case of regulation 93-2005 they want to ensure that the valuation of assets which is presented every 4 months by banks reflects economic reality and the quality of the goods."
In the first nine months of the year 1046 banking transactions were reported to have had characteristics of being possibly related to money laundering.
Data from the Superintendency of Banks in Guatemala indicates that 1046 reports were submitted, worth $400 million between January and September this year.
Elperiodico.com.gt reports that "...This year the number of reports increased by 25 percent, as in September 2015 only $100 million had been reported as suspicious transactions.The Superintendent indicated that this change is due to the "conscience" acquired by citizens, who are reporting more of these actions related to money laundering."Unusual situations that can not be explained by customers, become suspicious transaction and are reported," said the head of the SIB.
Fitch Ratings predicts headwinds and higher risks for banks in Central American countries in 2016, resulting in lower credit growth.
From a report by Fitch Ratings Central America:
Headwind: Central American Banking systems face greater risks in 2016. A slowdown in growth of gross domestic product (GDP) in the region and, consequently, lower credit growth is anticipated.
The Superintendency of Banks in Guatemala has published the Financial Inclusion Report corresponding to the fourth quarter of 2014, noting an increase of 15% in the number of account holders.
From a statement issued by the Superintendeny of Banks in Guatemala:
Financial Inclusion refers to a set of actions which aim to increase access and improve the use of financial services for all segments of the population, including those who have traditionally been neglected, ie, the poor and rural segments. Its importance centers around the fact that lack of access to financial services causes people limitations in their ability to save, receive credit and to protect against the occurrence of situations or disasters that may affect them in their daily lives, through insurance coverage.
Analysis by Fitch Ratings projects that banks in the region will maintain strong balance sheets and have stable profitability in 2014.
Excerpted from Fitch Ratings:
Differential Growth and Opportunities: Low financial depth, in most systems, continues to provide significant opportunities for expansion of bank balance sheets; although this is limited by low average income levels.
Despite pointing out several errors in the text which make the system impractical, the Legislative Assembly has given final approval to the proposed reforms, while they prepare further amendments.
Reform to the Banking System for Development has been approved, however, "... There are gaps that will make the plan unworkable and ineffective, if it is ever to become law ...