Marco Belmonte / Page Seven Digital
For seven years, the banks allocated 109 million dollars to the Guarantee Funds with a part of the profits generated each year, he informed Page Seven Digital the Executive Secretary of the Association of Private Banks of Bolivia (Asoban), Nelson Villalobos.
The banking system constitutes these funds on net profits since the 2014 management. In 2020, no resources were allocated since the entities reinvested 100% of the profits.
“During these seven years of contributions, the banking sector allocated 109 million dollars, of which 97% corresponds to Multiple Banks and 3% to SME Banks,” Villalobos said.
He explained that before the issuance of Supreme Decree 4666, 39% of the contributions were distributed to the Guarantee Fund for Social Housing; 32% for the Guarantee Fund for the Productive Sector and 29% for the Guarantee Fund for Seed Capital administered by the Productive Development Bank BDP SAM.
You can also read: CNC: This year there should be no salary increase because inflation closed with 0.9%
According to Villalobos, the banking system has always been characterized by complying with regulations, for public confidence in banking institutions.
“The banks will continue to support through access to funds to companies and families that after a risk assessment; have the capacity to honor their obligations, thus maintaining the health of the banking system and the economy as a whole,” Villalobos pointed out.
Supreme Decree 4666 establishes that Multiple Banking and SME Banking must allocate 6% of their net profits, obtained in 2021, for the creation of Guarantee Funds, in compliance with the Financial Services Law that establishes the obligation of entities of financial intermediation to fulfill a social function.
As of December 31, 2021, the net profits of the financial system reached 225 million dollars and increased by 60% compared to 2020 management, when they reached 140 million dollars, reported the Ministry of Economy.
