Financial Soundness Indicators Remain Robust

Tuesday, 04 April 2023

Bank liquidity and solvency exceed regulatory minimums.
Good payment performance is demonstrated by a 2.4% delinquency rate.

The International Banking Center (CBI) continues to display resilient performance, characterized by adequate liquidity, solvency, profitability, and sustained growth in credit disbursement.

This is underscored by the results of liquidity and solvency indicators, which stand at 56.7% and 15.5%, respectively. These figures exceed the required regulatory minimums (30% and 8%).

Furthermore, the net credit portfolio of the CBI has shown an 11.3% increase, totaling USD 83.49 billion. This represents a significant gain of USD 8.49 billion compared to the same period last year, indicating a consistently positive net credit offering. The sound payment performance is evident in a 2.4% delinquency rate, which has remained relatively stable in recent months.

The CBI’s assets have reached a total of USD 139.27 billion, reflecting an increase of USD 4.34 billion, equivalent to a year-on-year growth of 3.2%.

In terms of funding sources for the banking system, deposits constitute a substantial portion of CBI’s funding, supporting its credit operations and minimizing reliance on wholesale funding through market debt issuance, which is typically more volatile.

Banks employ a financing strategy that relies on term deposits and demand deposits (savings and checking accounts), followed by issuances to support their activities. The deposits at CBI have reached USD 98.23 billion.

In general, banks maintain a stable and well-rounded funding profile, with a significant portion of the portfolio financed through term deposits, characterized by high renewal rates.

The results of the Banking Activity Report of February 2023 reveal that banks currently mitigate asset-liability mismatches through financing lines from both local banks and external correspondents. They also maintain ample liquidity levels when assessed against regulatory standards and have the option to participate in the bond issuance market.

For further information on the results of this report, please visit our website at (Statistics).

Los indicadores de solidez financiera se mantienen robustos