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Unraveling Honduras’s Complex Banking Laws

Article Summary:

The Honduran Association of Banking Institutions is calling for a balance between regulation and promoting development, and protesting against unrealistic regulations implemented in country which suppress banking activities.

Photo Credit: Tiempo

Original Article Text From Tiempo via Google Translate :

According to AHIBA: Banking regulations are far from the national reality

The banking industry expects of the National Banking and Insurance (CNBS) a healthy balance between regulation and promotion of development, since some of its measures are very strict and unrealistic national.

The executive director of the Honduran Association of Banking Institutions (AHIBA), Lydia Maria Solano, after suggesting this, said it is not possible to apply international standards to regulate the local financial institutions. In that sense, questioned whether external standards for the management of banks are inspired by the international financial markets.

Problems of international banks are not like the Hondurans: Lydia Maria Solano, director of the Honduran Association of Banking Institutions

These same regulations – said – they have become stricter about the problems that banks have in developed countries, and AHIBA argues that many of the risks reported in these nations are not present in Honduras. For the case-illustrated – the national bank is not subject to international volatility because in fact its deposits come from public money and this is our best ally and your trusted dating back many years.

Moreover, the director of AHIBA suggested that with regard to agricultural loans should develop a special regulation to know the reality of agriculture. In this regard, said the producer sometimes does well in a crop and not in others, and that’s not the fault of the farmer. That may be due to a fall in international prices or climate was a risk, he said.

“So, we must understand that the employer of agricultural crops is three and not punish him because the first lost since you can recover the other two following” he asked. According to Solano, urgent work of moral credit, as some are covered by the climate risk or in the swing of prices for non-payment of debts, the executive concluded. MORAL “It is urgent to create a moral credit because there is no risk that rely on for not honoring their debts “: Lydia Maria Solano, director of the AHIBA.

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From Tiempo

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