During the last twelve months the returns given by state banks to their clients for savings in colones rather than dollars decreased by 2.6 % .
A financial report by the Central Bank of Costa Rica (BCCR) explains that "the data shows that the average differential in savings with a term of six months, closed at 1.46 points in September. But that margin was four points in the same period of 2012 ... ", reported Nacion.com.
Since 2007 Colombian bankers have made progress in the region, led by Bancolombia with $3,216 million and Grupo Aval with $2.821 million.
For example, in Panama they have operations with "... large international banks because it is considered a tax haven, where it is possible to make investments and transactions swiftly and without a lot of questions being asked by local controlling entities," noted an article in portafolio.co.
In the last year, the sector was characterized by lower loan growth, lower returns and higher funding costs.
Fitch has presented its Special Report on the Central American Banking System, which analyzes the performance of the sector in the period between July 2012 and June 2013.
The rating company highlights:
Low Credit Growth:
The loan portfolios of most banking systems in Central America slowed their growth rates in 2013, in line with the downward revision of the region's GDP. In June 2013, the annual growth of loan portfolios of five Central American countries stood in the range of 6% to 12% in real terms, although it was only 2.2% in Honduras. According to Fitch Ratings, loans in the region will close 2013 with real growth of about 7% (2012: 8.9%). Panama will lead the growth of the loan portfolio, but inflationary pressures throughout the region will be an additional limit to real credit expansion.
With an investment of $35 million, the company plans to build its "Citi Campus" at Corporate Centre El Cafetal, in the west of the capital.
The institution is aiming to physically consolidate its corporate banking and consumer banking operations in the country, along with hiring 800 additional workers over the next two years.
The Central Bank has reported that starting from September 5 the PBR will be lowered by 0.05% going from 6.55% to 6.50%.
The passive base rate (PBR) has remained at 6.55% for four consecutive weeks. After this update made by state entity the PBR will remain at 6.50% until September 11th.
Financial institutions in Costa Rica will have a maximum of 48 months to implement the new measures which restrict lending.
The information was confirmed by the National System for Financial Supervision (Conassif), which approved "11 new regulations, with a phased implementation period of up to 48 months, when the original version stipulated 36. Most of the grace periods start from 1 January 2014 ", reported Nacion.com.
Elfinancierocr.com reports: "In mid-August 2012 the PBR was 10.5%, it then climbed up to 11% in October and since then has been declining, after a change in the method of calculation applied at the end of last December. "
The Central Bank of Costa Rica has announced that from August 8th the PBR will drop by 0.05%, going from 6.60% to 6.55%.
Elfinancierocr.com reports: "With this move, the PBR maintains its stable trend which it has displayed for just over two months, as since the 30th of May, the indicator has been between 6.65% and 6.55% following a downward trend which began in late 2012. "
The Central Bank of Costa Rica has announced that from 1 August the PBR will rise by 0.05% going from 6.55% to 6.60%.
Elfinancierocr.com reports: "The PBR is used as a guide for most loans in colones granted by financial institutions and is calculated based on the weighted performance of rates in private and public banks and other financial intermediaries."
The Costa Rican Central Bank has decided to remove the limits on credit growth both in dollars and in colones, due to the weak economic growth facing the country.
The announcement came during the presentation of a review of the Macroeconomic Program 2013-14, where it was revealed that growth projections for that period are 4%, while inflation will be 5%. According to the President of BCCR, Rodrigo Bolaños, the Costa Rican economy is growing at a slower pace due to a reduction in exports, coffee rust, the limitations on sowing more pineapples and even the limit on credit growth.
The decision to go abroad to raise funds is based on the BCR's recent investment grade risk rating by Moody's.
"The goal is to transfer the debt in dollars from short to long term. We needed the rating by Moody's in order to get into more sophisticated markets," said Mario Rivera BCR manager.
Adherence to the group known as GAFISUD by its initials in Spanish will strengthen the work on preventing and combating money laundering and repressing terrorist financing .
Despite the restriction by the central banking system which has caused a general credit contraction, consumer loans have grown by 22%.
According to data from the Superintendent of Financial Institutions (Sugef), these activities are maintaining an upward trend, despite a slowdown in the national economy. "The growth in both sectors is important because they are together as a whole, 40% of the total credit granted by banks", reported Nacion.com.
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