Guatemala Banks Strengthen Compliance Protocols Post-Pandemic

Resilient Economic Recovery and Improved Credit Rating

Guatemala’s banking system has demonstrated remarkable resilience in the face of the COVID-19 pandemic. The country’s credit rating has been upgraded by major agencies, citing stable macroeconomic conditions and cautious monetary policies.

Key Statistics:

Inflation expectations have decreased to 8.32% (April 2023)
Interest rates raised to 5% (April 2023) to control inflationary pressures
Private sector credit has seen a significant increase, reaching GTQ213 million for March 2023

Strengthened Compliance Procedures and Anti-Money Laundering Laws

The Banking Superintendence (SIB), which oversees the Guatemalan banking and financial system, is responsible for enforcing strict compliance protocols to prevent financial crimes. The SIB uses its Special Verification Intendancy (IVE) and the Financial Intelligence Unit to supervise anti-money laundering and counter-terrorism financing laws.

Key Institutions:

18 banks
11 financial companies
Other institutions

Growing Financial System with Total Net Assets of GTQ486 Billion

As of 2022, total net assets stood at GTQ486 billion, representing an 11.9% interannual increase driven by growth in credits, investments, and availabilities.

Improved Economic Conditions through Legislation

Recent legislation has aimed to improve economic conditions in Guatemala, including:

A new Leasing Act
An Act to Promote Investment of Foreign Capital
Amendments to the Free Trade Zones Act

Optimism for Growth with Challenges Ahead

Investors are optimistic about Guatemala’s potential for growth as its civil and commercial justice system transitions towards electronic procedures. However, concerns remain regarding recovery and foreclosure processes, which may be impacted by the shift towards digital proceedings.

Expert Advice for Navigating Complex Banking Regulations

The Banking and Finance Practice Group at Mayora & Mayora is equipped to provide clients with expert advice on structuring contracts, secured transactions, and compliance with local banking regulations.