Banking consumer credit credit-crunch credit cards credit contraction mortgage financing restriction of credit Economics access to credit bank credit Arturo Arana BAC Credomatic Bank of Production S.A. (Nicaragua) Cámara de Urbanizadores de Nicaragua Personal loan

Financial crisis starting to affect Nicaraguan Banking

The effects are already visible, there is a strong reduction in the credit for housing and vehicles, as well as a restriction of credit cards.

Wednesday, December 17, 2008

©image: Alex Cascone

This was confirmed by representatives of the sector, after participating in presentation of the fourth report on the economic situation by the Nicaraguan Foundation for Economic and Social Development, Funides.

Arturo Arana, executive president of the Production Bank, Banpro, said that they are not restricting credit, however they are being more selective regarding which sectors they can finance.

Source: elnuevodiario.com.ni

Key entities

Nicaraguan Foundation for social and Economic Development Arturo Arana Bank of Production S.A. (Nicaragua)

Countries

Nicaragua

Insight

credit cards consumer credit restriction of credit credit-crunch mortgage financing credit contraction financial crisis Banking Economics

Credit Supply Stagnant in El Salvador

June 2011

Since the fourth quarter of 2008, credit extended by banks has been declining consistently.

An analysis published by the Salvadoran Foundation for Economic and Social Development reads:

“This decline has various interpretations, from suggestions that it is the result of reduced demand due to the lack of investment opportunities, to the internationalized banking system’s lack of identification with the needs of local businesses. Regarding the first scenario, this is a very limited conclusion and the second case offers an interpretation that doesn’t have an economic foundation.

Credit Card Market Stagnant in El Salvador

April 2010

Consumer budgets are still healing from the economic crisis, delaying a recovery in credit card lending.

Almost 60.000 credit cards were cancelled during 2008 and 2009, half of them for delinquency by their owners. Many others maxed out their credit and cannot use their cards anymore.

Credit for housing restricted in Nicaragua

December 2008

The Banking Superintendence issued a ruling ordering that starting January credit that is greater than 40% of the salary of the person requesting the loan should not be granted.

This is applicable to requests for financing for housing or consumption, confirmed the head of the entity, Victor Urcuyo.

The Credit Situation in El Salvador

February 2009

An analysis of the changes in the dynamics of granting credit, in an interview with the Superintendent of the Salvadorian Financial System.

Luis Armando Montenegro, Superintendent of the Financial System, in an interview published in La Prensa Gráfica, responds to questions about the liquidity of the Salvadorian financial system, the contraction of external credit to the local banking system, changes in the granting of loans, and interest rates, among other issues.

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