Hyperinflation, rampant poverty and a dramatically shrinking economy are plaguing Venezuela, once one of the most prosperous nations in Latin America. While official figures are scarce and often unreliable, the data that is out there paints a bleak picture for the future of the oil-rich nation’s banks, Kat Van Hoof finds.
Despite a wealth of natural resources, Venezuela has turned into an economic and humanitarian disaster zone. As it teeters on the edge of default, Silvia Pavoni examines what may become the most complex sovereign debt restructuring in modern times – and a test of how China handles troubled foreign investments.
Venezuela’s economy is in tatters, with sky-high inflation and mass shortages fuelling protests. While banks have made provisions for loan delinquencies, they are hugely reliant on deposits for funds and hamstrung by regulations. Lucinda Elliott reports from Caracas.
Sky-high inflation, a spiralling economy and a bleak foreign exchange environment in which the black market is thriving are presenting Venezuela's banks with one of the toughest tasks in global financial circles just to stay in business. Jason Mitchell looks at how those still standing are managing to cope.
While The Banker's Top 1000 World Banks ranking published every July gives an insightful and unique snapshot of the state of the global banking market, our ranking of those banks featuring just below the ranking gives an excellent indication of the way in which the market is heading, and which countries and regions are on the rise.
Many of Latin America's high-net-worth individuals are repatriating their funds and an increasing number of foreign investors are targeting the region, thanks to its rapidly expanding economy. With such demand for local product providers, domestic firms are finding themselves having to pit their specialist knowledge against the international reach of large foreign banks, making competition tough.
Venezuelan president Hugo Chávez has ushered in massive changes to the country's banking sector, nationalising or closing banks, while introducing community banking terminals in slum areas to make banking more accessible. But is this level of public spending sustainable?