Honduras Central Bank Reactivates Bank Reserves

BCH will force banks to maintain a 6% reserve on domestic currency deposits, and 12% on foreign currency ones.

Wednesday, November 4, 2009

With this measure, the Central Bank intends to control the level of liquidity in the national financial system.

"Another objective of this policy is to protect the exchange rate and the international monetary reserves", reported Laprensahn.com.

More on this topic

Central Bank of Honduras (BCH) reduces banking reserves

October 2008

In order to facilitate the economic growth in strategic productive sectors, the BCH reduced the banking reserves by 2 points.

On July 18, the BCH lowered the reserves by 5 points to 12; with the latest reduction on Wednesday it will now be at 10. For each point, the BCH releases $47.6 million (900 million lempiras) to private banks.

Restrictive Liquidity Measures of in Honduras

May 2012

A new monetary policy prepared by the Central Bank of Honduras affects the competitiveness of the financial sector and credit availability.

Honduran banks reduced by $1,500 million the amount available for loans to the productive sector and may raise interest rates in light of provisions by the Central Bank of Honduras.

Costa Rica: Changes in the Banking Reserves Will Restrict Credit

June 2009

According to Banks, the change in the calculation of the reserve will increase the costs of the financial intermediaries and will reduce the supply of credit.

The Central Bank of Costa Rica modified the methodology used to calculate reserves, implicating that, beginning next July 1st, Banks must have deposited in the Central Bank, at the end of each day, deposits of no less than 97.5% of the minimum legal reserves for the previous month. At the moment this calculation is done based on deposits from 5 days beforehand and it is at 90%.

Honduran Central Bank reduces reserves

November 2008

Starting on December 6, the legal reserves in local currency will be reduced to 0% and will be lowered by five points for deposits in foreign currency.

The measure, announced by the president of the Central Bank, Edwin Araque, seeks to increase liquidity in the financial system by some $251 million (4.8 billion lempiras) which the banks will have available to offer in credit.

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