Macroeconomic and Financial Situation in Central America - Special Financial Stability Report - September 2024
The main purpose of these reports is to monitor the vulnerabilities and risks of the financial system. Opinions and potential errors are the sole responsibility of the authors, and their contents do not compromise the Board of Directors of Banco de la República (the Central Bank of Colombia).
The Financial Stability Special Reports accompany the publication of the Financial Stability Report, providing a more detailed analysis of certain aspects and risks relevant to the stability of the Colombian financial system.
In recent decades, Colombian banks have significantly expanded their presence in Central America, leading to increased exposure in the region. This expansion has primarily been achieved through 14 banking subordinates, which, as of June 2024, had assets worth COP 202.5 trillion, representing 18.1% of the total consolidated assets of Colombian credit institutions (CIs). This presence is also systemically important for some Central American countries. For instance, in El Salvador, two Colombian banking subsidiaries account for 38.6% of the country’s banking system.
Given this exposure, it is essential to monitor the macroeconomic and banking environments in Central American countries where Colombian CIs have a significant presence. The purpose of this Special Financial Stability Report is to present the results of this monitoring process, identifying risks and vulnerabilities that could impact local financial stability.
