A. M. The most recent Latin American economic report, prepared by the Central American Monetary Council in collaboration with the Bank of Spain, analyzed the impact of international monetary policies on bank credit in the region. The findings show that an increase of 1 percentage point in the official interest rate of the U.S. Federal Reserve causes, on average, a reduction in credit granted of 0.3 percentage points in these countries.
This effect is observed uniformly in all banks in the region, regardless of whether they are locally or foreign-owned. However, the impact varies according to each country’s domestic policies. In those economies with inflation targets, the average credit contraction was 0.1 percentage point, although the researchers caution that this result is not statistically significant.
In the case of banks of Colombian origin, the effect was more pronounced, with an additional reduction of 1.1 percentage points in credit granted. This suggests that entities with this profile may be more sensitive to changes in international rates, which directly influences the availability of financing in the region.
The report also noted that in El Salvador the composition of credit reflects the strong presence of foreign banks. Colombian banks account for 54.1% of the loans granted, followed by other private entities with foreign capital with 31.9%, while local banks have a 14% share. This scenario could mean that the salvadoran market is particularly vulnerable to external monetary decisions.
Despite the reduction in credit availability, the report does not suggest an immediate crisis, but rather a moderation in the pace of financing. The reaction of the authorities and the banking sector will be key to mitigate the effects of these changes and guarantee stability in access to loans in the region.
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