Across the banking sector credit in dollars increased by 17% in just twelve months (June 2011 to June 2012) ($ 1.195 million). In that period the increase in dollar portfolios was 24.7% in public banks and 12.7% in private banks.
The data on the behavior of domestic credit provided by the Costa Rican Banking Association (ABC in Spanish) clearly outlines the behavior of dollar credit in the past year, which has increased significantly, both among private and public banks.
According to the ABC, up to June credit growth in local currency at the banking system level was 8.8%, an increase that was stable during the first part of the year.
At the bank level, national currency loans from public banks rose by 9.7% and by 3.9% from private banks
Contrary to what happens with loans in colones, the dollar credit growth has been steady, but has accelerated, mainly between April and June.
Across the banking sector credit in dollars increased by 17% in just twelve months (June 2011 to June 2012) ($1.195 million). The increase in the dollar portfolio was 24.7% in public banks and 12.7% in private banks in the aforementioned period.
In the last twelve months the loan portfolio grew by 12.7% in dollars and 15.6% in colones.
The portfolio of loans granted by financial institutions to the private sector continues to grow while at the same time interest rates are increasing in both dollars and colones in the local financial system.
If the measures which the Central Bank plans to implement come to fruition, banks will have to seek authorization from the entity in order to borrow abroad in dollars.
This measure would be in addition to the latest implemented by the Central Bank, raising reserve requirements to 15% on new business loans from abroad.In June this year the increase in the loan portfolio in dollars compared to the same month of 2015 was 14%.