Banking Authority (Guatemala)
in Central America
Wednesday, January 18, 2012
Guatemala banks earned $387 million in 2011, up 17.6% from $329 million in 2010.
Victor Mancilla, Superintendent of Banks, said that besides the increase in profits, the default rate fell to 1.6%.
"Meanwhile, the return on assets (ROA), which is what banks earn for each Q100 invested, rose from 1.6% in 2010 to 1.7% in 2011, meaning that for every Q100 the bank received Q1.60 and Q1.70, respectively.
Friday, December 2, 2011
According to a resolution from the Junta Monetaria (JM) banks in the financial system can offer their clients mass scale insurance services.
Resolution JM-142-2011, published on Friday 2 December in the Diario Oficial states that the sale of insurance products has been regulated by article 89 of the Law on Insurance Activities since the 5th of January, however it was necessary for the JM , in the opinion of the Superintendency of Banks (SIB), to authorize banking institutions to undertake other operations and provide other services that were not accounted for in the aforementioned legislation ‘as long as they are compatible with normal functions’.
Monday, November 28, 2011
Before new insurance companies join the market insurers are expanding their range of products and services.
Starting next year it is expected that the Superintendency of Banks (SIB) will authorize the insurers Best Meridian Insurance Company (BMI) and the British Union Provident Association (Bupa) to start operations .
Tuesday, November 15, 2011
The Credit Default Swaps (CDS) for Guatemalan bonds is only 1%, confirming the perception of investors that the chance of a default is very remote.
History seems to be repeating itself, but in reverse. While developed countries, especially those in Europe, are struggling to find a solution to the debt crisis, Latin American countries are enjoying relatively stable conditions, especially in the sphere of international finance. Guatemala is no exception. Its government debt bonds are sought in the international market, where they are perceived as having relatively little risk and a satisfactory ability to pay.
Friday, November 4, 2011
According to experts, more branches do not mean a larger banking population.
While the number of bank branches in the country has grown significantly, the number of Guatemalans who have a bank account is less than 25%.
Experts in the field, such as the economist Julio Estrada, say that one of the main advantages of the population being involved in banking is access to credit, which enhances a country's development.
Monday, October 31, 2011
In September the total amount of loans to large companies increased by 7.04%, compared to the same period in 2010.
Regarding the data from the Superintendency of Banks (SB), an analyst from the Association for Research and Social Studies (ASIES in Spanish), Ruben Dario Narciso, detailed several reasons that have lead to the increase.
Wednesday, October 19, 2011
In the first half of 2011 a total of $874.7 million was generated in foreign exchange.
The growth in export volumes and high grain prices internationally, are responsible for the increase in coffee sales in the first six months of the year compared to the same period in 2010.
Thursday, October 13, 2011
The amount in loans made in the first nine months of the year, $2,900 million, reflects greater economic dynamism in the country.
According to the Superintendency of Banks (SIB), these types of loans currently represent 26% of the entire banking portfolio.
Wednesday, October 12, 2011
Analysts say that the regulations contained in the bill issued by the Guatemalan Superintendency of Banks are restrictive for the sector.
Byron Dardón in his article for La Prensa Libre interviewed Cesar Stump, director of the Rural Development Cooperation of the West and an analyst from the Association of Social Economic Research (ASIES), Carlos Gonzalez.
Tuesday, October 11, 2011
New regulations, issued by the Guatemalan Superintendency of Banks, regulate the establishment, merger, operation, suspension and liquidation of Microfinancing companies.
The bill establishes a minimum capital for the start of operations of $2.5 million for credit and investment microfinancers and $5 million for credit unions.
"Institutions can be transformed into savings and credit microfinancers, if authorized by the Monetary Board, after a ruling by the SIB.
Wednesday, October 5, 2011
With the entry of the US firm BMI, Guatemalans now have a new health insurance option available in the country.
The Superintendency of Banks (SB) has authorized a change in the corporate name of the company, which was registered in the country as the BMI Insurance Company of Guatemala, Sociedad Anonima.
Monday, October 3, 2011
Looking at figures up to until August 2011, collective life insurance plans accounted for 81.6% of the total.
According to information from the Superintendency of Banks (SB), until August, the total amount of insured individual plan premiums reached $16.35 million (18.2%), meanwhile direct premiums in group plans totaled $73,5 million.
"An insurance expert Mario Mendizabal said the group plans monopolize the market because companies buy them for their employees."The company pays a portion and employees another, but what the workers pay is something symbolic or minimal", he added.
Thursday, September 22, 2011
Funds in the banking system have increased by 10.34% so far this year.
Data provided by the Superintendency of Banks (SB), indicates that loan funds have reported increases year after year. Figures up to December 2008 amounted to $2,449 million, for December 2009 it was $3,013 million, and the balance in December 2010 showed an increase of 4.2%.
Wednesday, August 17, 2011
The British Insurance giant BUPA expects to start operations in late 2011 or early 2012.
The company plans an investment of $2 million for its initial operation in the country, and hopes to expand its activities, said Anthony Cabrelli, chairman of BUPA for Latin America and the Caribbean.
According to an article by Batres Alexis in Elperiodico.com.gt “Enrique Murillo, executive director of the Guatemalan Association of Insurance Institutions (Agis), believes that the entry of BUPA into the domestic market will be seen as direct competition. ‘It will provide healthy competition for the sector’ he said. "
Monday, August 15, 2011
In recent months the banking system has reduced interest rates on loans to large corporations.
In March 2009, the average interest rate on loans over $650,000, stood at 9.75%, changing to 9.29% in December 2010 and in March of this year is was 8.43%, showing a downward trend.
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