Guatemalan Banks to Cover Currency Exchange Risk

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Banking Superintendent Edgar Barquín explained that the measure, which affects a third of the entire loan portfolio in dollars -$982 million-, will force banks in the system to increase their capital in $48 million.

Barquín told local newspaper Prensa Libre that "the measure won't alter interest rates for loans in dollars", and that "the objective is to provide further protection against currency exchange variations".

Source: prensalibre.com

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Even though bank portfolios in arrears are not at a critical level, the SIB will request that the Monetary Board make the changes to the rules in order for banks to increase their reserves for bad debts (loans).

Panama: New Calculation of Capital Adequacy Ratio

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Assets that under the current rules were weighted at 100%, with the change will be weighted at 125% and 150%.

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