Banking Asociación de Bancos Privados Juan Carlos Argüello Superintendency of Banks and Financial Institutions Nicaragua credit cards Cámara de Urbanizadores de Nicaragua Infraestructure & Construction credit card Infrastructure and Construction Local Law Low cost house Private Enterprise Council (Nicaragua) bank capital banking system construction

Minimum Capital for Banks Raised

Nicaragua's private banking sector reacted positively to the Superintendency of Banks’ decision to raise the minimum capital required by banks to more than $10.65 million.

Wednesday, February 1, 2012

Juan Carlos Arguello, president of the Association of Private Banks of Nicaragua (Asobanp), told the online edition of La Prensa, that actually private banks have a current coverage of 16% minimum share capital, 4% more than the required level of 12%.

"This is a healthy development for the financial system," said the representative of Asobanp in an article in La Prensa.

The total loan portfolio of the National Financial System (SFN) added up to 1,130.4 million córdobas ($ 49 million) in 2011.

Source: laprensa.com.ni

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Asociación de Bancos Privados Juan Carlos Argüello Superintendency of Banks and Financial Institutions Nicaragua

Countries

Nicaragua

Insight

bank capital social capital Banking

Too Much Discretion in Financial Investigations

May 2012

The bill which creates the Financial Analysis Unit in Nicaragua does not clarify the obligation to provide a basis for investigations conducted by the institution.

The Superior Council of Private Enterprise (COSEP) and the Association of Private Banks of Nicaragua (Asobanp) have pointed out inaccuracies in a legislative decree regarding the power the future Financial Analysis Unit to conduct investigations in Nicaragua.

Less Credit Cards in Nicaragua

January 2012

In the past four years credit card issuance has reduced by 42.4%.

Credit restrictions applied by banks is one of the reasons for the reduction. According to Juan Carlos Arguello, president of the Association of Private Banks of Nicaragua (Asobanp), the downward trend will be maintained.

Nicaraguan Banks Oppose Credit Law Reform

June 2010

They argue that rates cannot be lowered any more, and they would prefer regulations issued by the Superintendence instead of new laws.

Juan Carlos Arguello, president of Asobanp (Association of Private Banks of Nicaragua) said that the sector does not support an amendment to Law 515 of Credit Cards, as they consider more convenient to have regulations issued by the Superintendency of Banks, as this would be "less disruptive to the system", he said.

23,000 Homes That Cant be Sold

October 2011

They were built to be sold using government subsidies, but an increase in the cost of building materials has pushed their real price above the limit established by the law.

The Government is maintaining its position of not raising the price ceiling of $20 000, stating that this would not benefit poor families, but recognizes that it must find a solution to the problem.

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