Venezuela’s new financial infrastructure, recently approved by the National Assembly, will replace the General Law on Banks and establish universal banking, microfinance banking and money exchange offices that will launch at an unspecified date. This new infrastructure will replace all commercial, mortgage and investment banking operations and will dissolve the National Bank Council. Venezuela’s metropolitan banks will have to increase their share capital from the current base of USD 9.3 million to a minimum of USD 39.5 million, while regional banks’ capital will need to increase from the current requirement of USD 4.65 to a minimum of USD 19 million. Microfinance banks (MFBs) will have a minimum required capital base of approximately USD 8 million.
This move is consistent with others that President Hugo Chavez has undertaken to nationalize Venezuela’s economy. The following MFIs with operations in Venezuela report to the Microfinance Information Exchange (MIX): MiBanco with USD 47 million in assets as of 2008 and BanGente with USD 115 million in assets as of 2009.
By Diana Baide, Research Assistant
[1] El Universal. “Venezuelan financial system to be limited to universal and microfinance banking” by Mayela Armas, translated by Gerardo Cardenas, 12 November 2010
http://english.eluniversal.com/2010/11/12/en_eco_esp_venezuelan-financial_12A4721215.shtml
[2] BBC News. “Venezuela country profile” 28 September 2010
http://news.bbc.co.uk/2/hi/americas/country_profiles/1229345.stm
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