Between May and June of this year, the average lending rate of commercial banks has fallen from 11.52% to 10.28%, a drop that is explained by the high level of liquidity of the banks and the low placement of credits.
The pandemic that caused the outbreak of covid-19 has hit the financial system, since due to the current market conditions, the active rates have come down between the months of May and July.
In Costa Rica, the Alvarado administration would be considering the creation of a tax on each transaction that a person or company makes through a financial entity, a tax that will discourage savings and motivate people to use cash.
In order to discuss a medium and long term credit with the International Monetary Fund, the Costa Rican authorities would be planning to design and create a new tax, which consists of each person paying a tax of ¢3 for every ¢1.000 in the transactions they make through a bank, finance company, mutual fund, stock exchange or any other financial entity.
The Costa Rican Legislative Assembly approved in first debate the bill that creates a deposit guarantee fund and resolution mechanisms for the banking system.
The objectives of the deposit guarantee are to protect depositors, particularly small ones, and to strengthen financial stability in the event of a bankruptcy of an intermediary, through timely payments to insured depositors and maintaining confidence in the financial intermediation system is critical to avoid bank runs and protect financial stability, the legislative body explained.
Since April 2018 the total deposits of the National Banking System have been decreasing every month, but in August and September the trend seems to have reversed, as in both months there were increases.
According to data from the Superintendence of Banks and Other Financial Institutions (Siboif), between July and August a $39 million growth in bank deposits was reported.
The Central Bank announced that from August 12 it will reduce from 15% to 13% the legal reserve week rate in national currency.
From the Central Bank of Nicaragua statement:
Managua, August 07, 2019. The Central Bank of Nicaragua (BCN) reports that liquidity conditions are observed that favor the support of banking and monetary operations, which represents a change with respect to previous behavior.
From May 2019, foreign customers will have to declare to local system banks that their funds meet their country's tax requirements.
The Superintendence of Banks of Panama (SBP) approved Agreement 02-2019, which implements the recommendations of the Financial Action Task Force, which consists of expanding the required due diligence measures of banks with their customers.
In Nicaragua, between the end of March and the beginning of September, deposits in the banking sector fell by 19%, affected by the socio-political crisis in the country.
According to the most recent data from the Central Bank of Nicaragua (BCN), deposits in foreign currency up to September 6 totaled $3.31 billion, less than the $3.34 billioncounted at the end of August. In the case of deposits in córdobas, they reported a slight increase in the periods in question, rising from 35,326 million to 35,595 million.
At the end of April of this year, the loan portfolio granted by banks amounted to $12.582 billion, registering a 13% increase compared to the same period last year.
According to figures from the National Commission of Banks and Insurance (CNBS), between the month of April 2017 and the same period in 2018, the loan portfolio grew by $1.433 billion, rising from $11.149 billion to $12.582 billion.
In April, deposits in the Nicaraguan financial system totaled $5.414 billion, registering a 9% increase with respect to the same month in 2017, but below the rate of 11% reported in March of this year.
The Central Bank of Nicaragua reported that in the fourth month of the year "... deposits in the national financial system amounted to 167,560.8 million córdobas ($5.414 billion), which represented year-on-year growth of 8.7 percent (11.4 percent in Mar-18), representing a deceleration with respect to the month of March 2018."
In the first quarter of 2018, credit granted by banking system entities grew by 5% compared to the same period in 2017, driven by consumer loans and business loans.
Figures from the Salvadoran Banking Association (Abansa), up to last March, indicate that "... most of the financing granted was oriented towards consumption, housing, commerce and manufacturing, which in some way stimulated productive activity."
As of February 2018, banks in the system had assets totalling $41,343 million, which is 7% higher than the $38,655 million reported in the same month in 2017.
The Superintendency of Banks in Guatemala reported that at the end of February 2018, the bank's national currency assets totaled $29.921 billion, and assets in foreign currency amounted to $11.422 billion.
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.
...and I will tell you who you are. In their quest to reduce exposure to risk, banking correspondents have started to restrict the services they provide to gambling companies, remittance companies, and brokerage firms that are not related to banking groups in the region.
In order to reduce risk exposure, some international banks with correspondents in Panama and other countries in the region are failing to open accounts for or provide services for companies whose income comes from activities such as remittances and gambling.The banks' argument is that they are more likely to be used for money laundering. Even non-banking brokerage firms claim to have difficulty offering their customers products and services,"... since banks wont open accounts in which customers can deposit their funds and receive a return on their investment."
español
5883
