Before 2000 and the early 1990s there were some instability in banking institutions in Nicaragua and there were even some closures. But since then there has been a lot more stability.
For example, Bancentro LAFISE has been recognized as regional leaders and have been doing very well with great Fitch ratings. I believe that last Bancentro LAFISE an AA Fitch rating for the year. Also, the bank has been nominated by Estrategia y Negocios as one of the best banks in the region.
It doesn’t matter which bank you use. Fogade (a publishing company similar to Forbes in the US) is an insurance institution that guarantees deposits up to US $10,000. So there is stability.
There was some problems with the banking institutions in Nicaragua before in the early 1990s and late 1980s, but then again we were just finishing a war, so it’s kind of understandable. There were some banks that even went out of business. There were depositors who didn’t get any of their money back. Others got part of their money back.
Since then there have been changes. There has been more regulation. Now financial and banking institutions here in Nicaragua have to answer to a superintendent of banks, the SIBOIF, which in Spanish is “Superintendencia de Bancos y de Otras Instituciones.” Now banks are regulated by that entity. It’s a separate legal entity that the government regulates and in turn it regulates financial and banking institutions in Nicaragua. Now, your deposits are insured by a separate entity, the Fogade, up to $10,000 and I believe that Standard and Poors has actually increased Nicaragua’s ratings last year for banking and investment opportunities just on this transparency alone.
There’s more stability and more transparency now, which we all want and we all need and everybody benefits from it.