Bank of El Salvador Suffers From Increased Country RiskFriday, August 9, 2013 In mid-July Fitch Ratings downgraded to El Salvador from "BB" to "BB-" and only a day later downgraded the rating for the Banco Agrícola from "BBB-" to "BB +" and that of Davivienda from "BB to BB-" . The downgrading of the country by international rating agencies has spread to private banks such as the Agrícola and Davivienda who also had their ratings downgraded. Correspondent Banks in El SalvadorMonday, August 20, 2012 Banco Agrícola intends to open 200 small business correspondents, once the bill under study in the Legislature is approved. The major attraction of this system, which already operates successfully in countries like Colombia, Brazil and Guatemala among others, is that it allows users access services provided by a bank without having to physically go to a branch or ATM . It also fosters growth in the small businesses that adopt the scheme. Negative Perspective on Salvadorian BanksWednesday, June 24, 2009 Fitch changed its long term perspective rating from "stable" to "negative" for the banks Agricola, HSBC, and Scotiabank in El Salvador The reason for this change is the current "negative" perspective for the sovereign rating for the Republic of El Salvador, which could affect the Issuer Default Rating for the long term for the three main banks in El Salvador in the case that the rating is reduced again in the country. Salvadoran Banks Reduces ProfitsMonday, May 4, 2009 In March 2009, the banks from the financial system recorded profits of $22 million, compared to $34.9 million for the same period last year. Of the banks, Agricultural Bank was the one that registered the highest profits. Finance: Optimism for New InstrumentWednesday, February 24, 2021 Negotiable certificates of deposit, a new investment tool that was authorized in El Salvador, generates expectations because it promises to improve the yield of savings and may be processed with no need to register it in an agency. The Standards Committee of the Central Reserve Bank (BCR) authorized on February 2, 2021 the new investment tool called negotiable certificates of deposit (CDN). Colombian Banking in Central AmericaFriday, June 11, 2010 The offer to buy BAC-Credomatic made by Banco de Bogotá confirms that Colombia’s large financial groups are seeking to expand their borders. An article in Portafolio.com.co remarks that BAC has so far not responded to the Colombians. The financial website also lists the international operations of Colombia’s financial institutions such as Colpatria, Davivienda and Bancolombia. Less Taxes, More CreditsWednesday, May 22, 2019 After the abolition of the Financial Operations Tax last year in El Salvador, credit to the productive sector increased from 5% in 2018 to 9% at the beginning of 2019. The Constitutional Chamber of the Supreme Court of Justice issued a ruling, in which it was ordered to cease charging at the end of 2018 a tax that levied 0.25% on financial operations of $1,000 and above. Rising Interest Rates in El SalvadorFriday, August 9, 2013 Access to credit could get more expensive due to liquidity constraints and a higher country risk. According to the Central Reserve Bank (BCR), last June returns on savings invested for 180 days was 3.44% while in the same period of 2012 the figure stood at 2.49%. In addition, interest rates on loans for over a year are 9.75% and in June 2012 they were 8.50%. Nicaragua: “Produzcamos” Bank Opens in AprilTuesday, March 23, 2010 The Bank for Fostering Production (Produzcamos), will start operating on April 19, with an initial capital of $50 million. Its main objective is to strengthen the country production with loans to micro, small and medium agricultural and industrial companies. Costa Rica: Bank Earnings Down 34%Tuesday, January 19, 2010 In 2009, banks in the country had net earnings of $190,32 million, 34% less than in 2008. Data from banking superintendent SUGEF shows that state-owned banks fared worse than privately-owned ones. The first suffered from a 37% reduction in earnings, while the latter 28%. Nicaragua: Funding for Irrigation SystemsWednesday, October 22, 2014 Lafise bank announced it has $5 million to provide 7 year term loans with one year grace to producers in Leon and Chinandega. After the meeting in Chinandega with producers and representatives from the financial institution solutions that fit the needs of the sector, the effects of climate change and fluctuations in international prices have been agreed in regards to production. Nicaragua: "Banco Produzcamos" to Open in MarchWednesday, January 27, 2010 The state bank, intended to foster production with easy loans, will open its doors on the first week of march. The bank was created with the objective of financing micro, small and medium companies from the agricultural and industrial sector. It begins with a capital of $116 million. State Bank to Remain IntervenedWednesday, May 30, 2018 An agreement was reached to extend for 90 days more the intervention of Banco Crédito Agrícola de Cartago, while discussion takes place of the plan that would allow its absorption by another banking entity. The National Council of Supervision of the Financial System decided on May 22 to extend for three more months the intervention of Bancredito, whose status, according to the authorities, continues to be of "financial infeasibility". Costa Rican State Banking Profits DecreaseFriday, April 24, 2009 In the first quarter of 2009 state bank profits fell by 25% when compared to the same period in 2008. According to the Superintendent of Financial Institutions (SUGEF), the opposite happened with private banks, which increased their profits by 12% over the same period. Nicaragua: No Opening Date for "Banco Produzcamos"Friday, January 15, 2010 Local producers demand the start of operations of this bank, intended to foster production with easy loans. The institution was created by law in 2007, with the objective of financing productive projects by micro, small and medium companies from the agricultural and industrial sector. |
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