Following the approval of the Bitcoin Law in El Salvador by the members of the Legislative Assembly, which creates a legal framework that recognizes this digital currency as legal tender in the country, the IMF warns that financial and legal risks have arisen.
If the reforms to the Banking Law that are being discussed in the Congress are approved, cooperatives will have to start reporting information in their loan portfolios.
Legal initiative number 5157which is pending final approval, proposes, among other changes, including in the Credit Registration Information System (SIRC by its initials in Spanish) information from financial institutions that are not yet sending reports.
In 2017, bank deposits totaled $11,715 million, 10% more than the figure registered at the end of 2016.
The "Financial Bulletin of the Banking System up to December 2017", prepared by the Salvadoran Banking Association, states that "... in the last five years, deposits have had average growth of 4.3%."
Almost a year after the liquidation of the bank was ordered, depositors have not yet received their funds, and in order to complete the settlement, the parent company will have to turn over $60 million.
Of the $100 million that Banca Privada de Andorra had registered as deposits in Panama, $60 million is abroad and the rest in Panama, reports Prensa.com.
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.
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. "
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.
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.
Banco Industrial has announced that it is prepared to start operations in Panama's financial center in the first quarter of 2015.
The Bank which is of Guatemalan origin, and which already has a presence in Honduras and El Salvador, is preparing to open its offices in Panama City, driven by the economic growth there.
Diego Pulido, manager of the company, told Elperiodico.com.gt "...
With the implementation of the Standardized Bank Accounts starting July 1st banking transactions will be streamlined.
From a statement issued by the Bank of Guatemala (BANGUAT):
Standardized bank accounts for Guatemala will come into effect, firstly, to standardize the numbers of current and savings accounts, which are commonly used to transfer funds electronically at the interbank level, through internal and external systems in the country.
Transactions and inquiries at ATMs and ownership of credit and debit cards, have doubled in cost over the past two years.
At some banks, membership fees have grown from an average of $15 to $21.40 for debit cards, which is an increase of 42.6%.
Regarding the cost of transactions and inquiries at ATMs, they have gone from $0.50 to $1.07 per transaction, which represents an increase of over 100%.
Only 14% of the Salvadoran population has a bank account.
As a way to promote financial inclusion, the U.S. Agency for International Development (USAID) and the Spainish-United Nations Fund for Achieving the Millennium Development Goals (MDG-F), insist on the creation of a regulatory framework to govern banking services.
"One of the main objectives is approval of the regulation on the subject of mobile transactions, which doesn’t require any physical branches, but access to technologies such as cell phones", says an article in Elmundo.com.sv.