Commercial banks in Honduras have expressed increasing interest in expanding lending to small and medium-sized enterprises (SMEs) according to a recent report from Honduran newspaper Impulso Microempreserial. Roque Rivera, President of the Asociación Hondureña de Instituciones Bancarias (AHIBA), the Honduran Banking Association, indicated that commercial banks recognize the potential in financing SMEs, however the institutions have not yet finalized the details of their plans for entry into the market.
The enactment of the Secured Transaction Law in January 2010, which allows credit seekers to provide as collateral alternative property pledges, such as movable and non-real estate property, has helped to catalyze this growing interest. Prior to the promulgation of this law, SMEs could receive financing only through mortgage-backed personal loans. The support for SME development from multilateral organizations, including the World Bank and the Inter-American Development Bank, has also encouraged commercial banks to consider increasing their participation in the SME market.
According to the report, the liquidity of Honduras’ financial system currently stands at more than HNL 31.5 billion (USD 1.65 billion) [1].
By Jacqueline Foelster, Research Associate
About Asociación Hondureña de Instituciones Bancarias (AHIBA): AHIBA’s mission is to guide and encourage the development of the private banking sector in Honduras. It serves as a repository of laws, decrees and resolutions relating to banking, economic and financial activities. It currently represents fifteen member banks before national agencies and authorities.
Sources and Resources:
[1] Impulso Microempreserial, February/March 2011, pgs. 12-13, “Banco Tradicional Hondurena Alista sus Esfuerzos Hacia las PYMES”, http://impulsomicroempresarial.com/
MicroCapital.org Article, February 2, 2011, “Microfinance Information Exchange (MIX) Releases ‘Microfinance Market Report for Latin America and the Caribbean 2010’”, https://www.microcapital.org/microcapital-brief-microfinance-information-exchange-mix-releases-%E2%80%9Cmicrofinance-market-report-for-latin-america-and-caribbean-2010%E2%80%9D/
MicroCapital Microfinance Universe Profile: Asociación Hondureña de Instituciones Bancarias (AHIBA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asociaci%C3%B3n+Hondure%C3%B1a+de+Instituciones+Bancarias+%28AHIBA%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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