Last year was a period of recovery for Latin America and the Caribbean from the economic collapse caused by the Covid-19 pandemic. Regional gross domestic product (GDP) saw a 6.9% rebound in 2021, after most economies contracted in 2020. The increase was driven by strong demand in key export destinations and high commodity prices, according to the World Bank.
As economic growth resumed, banks’ performance increased in tandem. Most banks in the region saw growth in Tier 1 capital and total assets, as well as a surge in pre-tax profits. The banks are well provisioned from 2020 and 2021, according to analysts.
