The country’s largest banks have sufficient capital to absorb larger credit losses resulting from the pandemic.
Panama retains its position as one of the best markets for banking in Central America, but success stories can also be found in Nicaragua and Guatemala.
The Banker’s Top 200 Latin American banks ranking for 2014 sees Brazilian institutions stay on top, while Argentina maintains its status as most profitable, despite mounting challenges.
While BAC Panama remained in top position, other Colombian-owned lenders fared less well in the Top 100 Central American Banks ranking, leaving the way open for Panamanian, Costa Rican and Guatemalan banks to make up ground.
While Panama's banks held their lead as the biggest banks in Central America, Nicaragua steamed ahead in terms of return on capital and return on assets.
Guatemala's economy is maintaining its steady recovery, based on sound fiscal and monetary policies as well as limited exposure to global banking markets. Now the banks are consolidating their position and reaching out to the country's vast unbanked population. Writer Jane Monahan
In response to rising inflation, Guatemala has adjusted its interest rates eight times in the past two years, and is working carefully to co-ordinate its monetary and fiscal policies, explains the president of Banco de Guatemala. Writer John Rumsey.
The Guatemalan economy has big potential, particularly in fuel and food production. The country’s minister of finance talks about his fiscal reform programme and intent to create a sustainable tax base. Writer John Rumsey.
Just as the banking industry’s big names turned their attention towards Guatemala, the credit crisis struck, plunging the country’s modernisation plans into jeopardy. Writer John Rumsey.
M&As have further cut the number of rankable entries in our listing, which remains dominated by Panama.
Guatemala’s poor infrastructure puts off investors and makes the country less able to fully profit from free-trade deals. Monica Campbell explains why, with elections looming, little change is likely for the time being.
Two banks collapse and someone forgets to replenish the nation’s cash supply – tough times for Guatemala’s financial system. But as Monica Campbell reports, there is some cause for optimism.
María Antonieta Del Cid de BonillaFinance Minister (2004-2006), Guatemala
Banco Agromercantil may not be Guatemala’s biggest bank and claims less than 10% market share, but it is one of the healthiest and most profitable institutions in the country.
Guatemala’s growing banking sector needs to consolidate to remain competitive, especially as foreign banks are eyeing up the country. Monica Campbell reports from Guatemala City.