Preventive reasons for unforeseen expenses in the context of the pandemic and low liable interest rates are some of the factors that explain the increase in the balance of short-term savings instruments in the Costa Rican market.
In the context of the spread of covid-19 and the restriction of several productive activities, the broad money supply (including cash held by the public and highly liquid financial instruments in national and foreign currency) showed a 35.7% year-on-year growth rate in June 2020, considerably higher than the 2.7% recorded in the same month in 2019, while the balance of term instruments fell, reported the Central Bank of Costa Rica (BCCR).
In the scenario of the health crisis and the decreed quarantine, it is reported that as of April, the balance of savings deposits of individuals amounted to $5,283 million, 15% more than the same month in 2019.
At the beginning of the year the authorities of the Central Bank of Honduras (BCH) estimated that for this year deposits in the financial system would increase by about 8%, however, this figure has almost doubled.
45% of Costa Ricans prefer to pay with cash than use debit cards, despite the fact that nearly 8 out of 10 possess this means of payment.
According to the latest study by the World Bank (WB), 53.6% of people over 15 years old in Costa Rica have at least one debit card, placing the country in fourth place in Latin America, just behind Brazil , Puerto Rico and Chile.
Both Citibank and Banco Nacional de Panamá have closed accounts belonging to the Democratic Change Party, founded by former President Ricardo Martinelli.
In what appears to be a reaction to the scandals caused by the allegations of corruption on the part of members of the previous administration, Citibank and Banco Nacional have stopped attending to the accounts where the Democratic Party's administrators deposited money coming mainly from electoral subsidy.
The Superintendency of Banks in Guatemala has published the Financial Inclusion Report corresponding to the fourth quarter of 2014, noting an increase of 15% in the number of account holders.
From a statement issued by the Superintendeny of Banks in Guatemala:
Financial Inclusion refers to a set of actions which aim to increase access and improve the use of financial services for all segments of the population, including those who have traditionally been neglected, ie, the poor and rural segments. Its importance centers around the fact that lack of access to financial services causes people limitations in their ability to save, receive credit and to protect against the occurrence of situations or disasters that may affect them in their daily lives, through insurance coverage.
Growth in income and increased foreign investment explain part of the increase from the $49,730 million worth in deposits in August 2010 to $73,302 million in the same month this year.
The Superintendency of Banks of Panama (SBP) reported that deposits which grew the most in the period in question are internal deposits in the International Banking Center (IBC) with a balance of $44.6 million, followed by individual deposits, with $34.1 million and finally government deposits with $6.4 million.
In a year savings in the banking system both in local and foreign currency increased from $3.5 billion to $4.2 billion.
The economic dynamism has increased the savings capacity of Nicaraguans, which is reflected in the figures for savings and fixed term deposits in the domestic financial system.
From a Monetary and Financial report by the Central Bank of Nicaragua:
The government has reported that a fake form is in circulation asking non-residents in the country for verification of bank accounts.
From a statement issued by the Ministry of Economy and Finance in Panama:
The Ministry of Finance wishes to make public knowledge, that there is a Verification Form for Non Resident Bank Accounts in Panama in circulation that is fraudulent, since in the organizational structure of the institution there is no such unit.
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.
Between 2006 and 2013 the number of agencies in the network of cooperatives in the country doubled.
Salvadoran Credit Unions have experienced a significant increase in the last year in order to expand financial services in most areas of the country.
The Federation of Savings and Credit Cooperatives of El Salvador (Fedecaces) announced that "growth is supported by an increase of over 20% in the portfolio of loans and deposits, after the close of 2013."
Growth in personal income, attractive yields and greater awareness about saving are driving interest in investing for retirement.
The pension market has been growing by nearly 25% a year, with assets under management which today are worth around $300 million. This is despite the fact that of the over half a million people working in Panama only 61,631 (3.8%) are enrolled in some form of private pension fund, which demonstrates the high potential for growth this market has.
Private banks in Costa Rica are opposed to the $30 million fund that protects small depositors being transferred to the Central Bank.
Nacion.com reports that "private banks are against transfer of the administration of the $30 million fund which protects small savers, in case of bankruptcy of a financial institution, to the Central Bank, as ordered by a Bill ruled on in the Economic Affairs Committee of Congress. "
From October last year to date, public banks in Costa Rica cut their average rate by almost 4.5%.
"In the last four months state banks made a sharp rate cut to place them below the average of other intermediaries and brush with near-zero real returns", reported Nacion.com.
"The banks reduced their rates so that they are now the lowest among the sector and real returns are close to zero.
In the last three years there has been a 54% increase in saving accounts.
At the end of September 30th, 2010, the Central Bank's bank accounts totaled 1,839,253 of which 1,808,523 in deposits belonged to individuals and 30,730 to corporate entities.
Balances were $ 3.593 million (individuals) and $ 1,856 million (companies), for a total of $ 5,449 million.