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Banking in Central America: Credit Growth Slows as Reputational Risk Rises

Banking in Central America: Credit Growth Slows as Reputational Risk Rises

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Although there are marked differences between countries, banks in Central America are still enjoying robust loan growth and healthy levels of profitability. However, this positive trend, seen since the end of the 2008 international financial crisis, will lose some momentum this year. In this report we analyze the growth of the loan portfolio, delinquency indicators and profitability levels of the various financial systems in Central America. In addition, we identify the weaknesses and strengths of each country's systems and look at the short and medium term prospects for banks in the region.

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