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).
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 "...
Up to February this year the balance of loans granted by the 18 banks registered in the country amounted to $15.8 billion.
The loan portfolio grew by 11.7% in Guatemala in the past year as reported by the Superintendency of Banks of Guatemala (SIB), a figure that confirms the growing economy.
"The Superintendency of Banks of Guatemala (SIB) reported that banking sectors loan portfolio totaled approximately $15.8403 billion as of February this year. The figure represented an increase of 11.7% compared to the amount reported in the same month in 2013."
Banco Industrial will be investing $2.5 million in opening six new branches in El Salvador.
Banco Industrial de Guatemala has announced the opening of six new branches in El Salvador, in which will it invest $2.5 million. The first three branches will open before the end of the first quarter of 2014 and will be located in Sonsonate, San Miguel and Plaza Mundo.
The Guatemalan bank G&T Continental has announced the opening of two new branches in the banking center of Panama.
The G & T Continental Bank of Guatemala plans to open two new branches in Panama in 2014. The company already has two other branches in the country.
Amador Carballido, development manager of G & T Continental explained that "in this country, with 3.8 million people, we estimate that there are more than five thousand customers."
According to experts, more branches do not mean a larger banking population.
While the number of bank branches in the country has grown significantly, the number of Guatemalans who have a bank account is less than 25%.
Experts in the field, such as the economist Julio Estrada, say that one of the main advantages of the population being involved in banking is access to credit, which enhances a country's development.
In the last ten years the number of banks operating in the country fell by 52.6%.
According to information from the Superintendency of Banks (SIB), in 1999 there were 38 banks operating in the country, dropping to 18 in 2010. In contrast, sector earnings rose 1736.7%.
Bankers and financial analysts agree today that the financial system is stronger.
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