Fitch Ratings notes that the Guatemalan banking system reports one of the lowest rates of delinquency in the region.
From the report 'Panorama of Guatemalan Banks' by Fitch Ratings:
Local Majority Banking System: The largest banks (70% of loans in the system) belong to local shareholders. At the same time, foreign-owned banks increased their share after Bancolombia acquired the controlling stake in Banco Agromercantil de Guatemala, S.A. (BAM).
A strategic alliance between Escuintla and the Korean port of Incheon will be possible because of an investment of $16.5 million, announced the Korean Chamber of Commerce in Guatemala.
The President of the Guatemalan-Korean Chamber of Commerce (CGCC), Raul Salazar, announced the construction of the Michatoya Industrial Park in the municipality of Palin, Escuintla (about 60 km from Guatemala City), whose construction phase will end in July.
Two private banks account for 81% of the 5767 bank agents operating in the country, which in the last three years have increased their presence by 40%.
As of June 30, 2015, 5767 agents are operating , 9.4% more than in the same period in 2014, according to the Superintendency of Banks. "... Five banks have a banking agents system : Banco G & T Continental has 48.5% of these agents, Banrural 33%, BI 17.65%, followed far behind by Banco de Crédito (0.66%) and Banco Promérica (0.19%). "
The credit portfolio grew by 9.8% in 2013, while assets of supervised banking institutions increased by 12%.
During 2013 the bank granted a larger amount of loan, as its portfolio grew by 9.8%. While the loans in 2012 totaled $ 9.139 million in 2013 were $ 10,043 million, a difference of $ 904.3 million.
With regard to assets, these increased by 12% going from $25,162 million in 2012 to $28,176 million in 2013.
At the moment Guatemala has no funds available to implement the increase of $100 million in the Coffee Trust approved by Congress.
This was announced by Finance Chief Pavel Centeno. He explained that the trust " ... will be used specifically to the change plantations impacted by rust and not be given to those who were late making the payments already requested ", reported Prensalibre.com.
With an investment of $220 million the Rural Development Bank of Guatemala plans to start operations in Honduras in May 2013.
The announcement of the expansion of the bank towards its neighboring country came amidst the celebration of the General Assembly of Shareholders of the Bank for Rural Development.
"The Commission has already granted approval to enter the Honduran market.
Banrural and the German Bank for Development and Investment have granted a loan to Servicios para Centrales S.A. to finish building the bus transfer terminal CentraNorte in Guatemala.
The Rural Development Bank (Banrural) and the German Bank for Development and Investment (DEG, by its German acronym), have agreed to pay $40 million to the company Servicios para Centrales S.A., to complete construction of the bus transfer terminal CentraNorte, reported Elperiodico.com.gt.
Producers are pushing a project to plant 20,000 acres of soybeans, primarily for local consumption but with a focus on long-term exports.
The ambitious plans to promote the cultivation of soybeans in Guatemala are being pushed by the Association of Soybean Producers (Agresoya), an initiative aimed at small farmers with credit support from Rural Development Bank (Banrural).
The State of Guatemala will insure 9 hydroelectric stations and 65 transmission substations, paying the most expensive annual insurance bill in the local market.
The National Institute of Electrification (INDE) awarded a policy of Q37, 8million ($4.86 million) to Aseguradora Rural to insure against all risks and terrorism, 9 hydro and 65 transmission substations, which are some of the most valuable pieces of public infrastructure in the country.
To date, about 8 banks in Guatemala, 4 in El Salvador and 3 in Honduras, Nicaragua and Costa Rica offer the service; there is still much ground to cover in the region.
The director of Technology at the company Ebclosión, Derick Brol, indicates that in Central America in 2011 there were mobile phone banking services in about 8 banks in Guatemala, 4 in El Salvador and 3 in Honduras, Nicaragua and Costa Rica.
The Rural Development Bank plans to open 21 branches in Honduras, investing $40 million.
Guatemalan banks are expanding into Central America. This time it is the Banrural, which has plans to open 21 branches in Honduras after obtaining permission from the authorities.
"The two largest banks in Guatemala have crossed the border and are competing for the Central American financial market, setting up operations in El Salvador, Honduras, Costa Rica and Panama; now they are being joined by the Rural Development Bank (Banrural) which has decided to enter Honduras and in the long term is also interested in expanding into El Salvador", reports ElPeriodico.com.
The banks have announced an agreement to provide a remittance service known as ExpressSend.
The new service will allow Guatemalans based in the U.S. to directly deposit money into savings accounts in Guatemala using any of the six thousand Wells Fargo service points.
"Wells Fargo is already operating remittance transactions with Banco Industrial (BI) and the Rural Development Bank (Banrural) in the country.
The Rural Development Bank (Banrural) and the off shore bank Mercom Bank Ltd., will fund luxury tourism projects on the Honduran coast.
Banrural will participate in the financing of the project's Los Micos Beach in Bahía de Tela and Mercom Bank Ltd of the financial group Agromercantil, will fund the project ‘Pristine Bay Resort, Golf & Spa’ on the island of Roatan, Honduras.
In recent years, electronic transfers have been growing at a rapid pace.
Bank managers agree that the use of electronic banking operations reduces transaction costs, being this the main reason for its growth.
Luis Lara, manager of the Banco Industrial (BI) told Prensalibre.com that the institution expects amount of electronic transactions made by the end of 2011 to exceed those of 2010 when they totaled $1,377 million.
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