After suffering a banking crisis during the government of Arnoldo Alemán (1996-200), during which time six banks folded, Nicaragua’s private banking sector has strengthened considerably during the government of pro-business, anticorruption President Enrique Bolaños (2002-present).
No banks have folded in the last three years, and deposits have increased 50%, to a total of around $1.9 billion in total assets, since Bolaños took office. Still, Nicaragua only represents 2.5% of Tier One capital in Central America.
The commercial banks operating in Nicaragua are: BAC, BANCENTRO, UNO, BANPRO, Banco De Finanzas (BDF), and CALEY DAGNALL.
All banks operate under the Banking Superintendence, which is the entity that regulates the operation of all banks in Nicaragua. The Superintendence oversees and enforces the General Law of Banks (Law 314), Financial Groups (Law 316) and the Organic Law of the Central Bank.
BANPRO (278-2508) is the country’s largest bank, with a 28% market share, followed by BANCENTRO, 22%, BAC, 17% and BDF, 16%.
All four banks offer dollar transactions, certificates of deposit, credit and debit cards and personal safety boxes. More than 65% of all bank deposits and accounts in Nicaragua are held in dollars. More recently, the banks have begun to offer mortgages.
Bancentro offers a variety of services
BAC (tel. 274-4444 in Managua, or 552-3353 in Granada, www.baconline.com), is considered a favorite by many foreigners, especially in Granada, where it just opened a modern new branch office. It has banks in all five Central American countries, and 21 bank locations in Nicaragua.
BANCENTRO (tel. 278-2777, www.bancentro.com.ni) also has international correspondent banks, and is also one of the fastest growing banks in Nicaragua. The bank is related to Grupo Lafise and has more than 40 branches throughout the country.
To requirements for opening a savings/debit account are similar for all the Nicaraguan banks.
The requirements are:
1) Have legal residency in Nicaragua
2) 2 letters of recommendation from Nicaraguan business leaders or respected members of the community who do their banking with said institution.
3) A minimum deposit of $200
4) A letter of recommendation from your home bank (In some cases, Bancentro will allow you to open an account without residency, if you have property here titled in your name. BAC is more strict, but will allow you to open an account if your residency paperwork is being processed).
It’s important to note that you don’t need to open a foreign bank account in Nicaragua to access the banks here. Most credit and debit cards from the United States (with Visa, Cirus, or Master Card) work in Nicaragua. You can get a cash advance inside the bank by presenting your card and passport, and, in some cases, the cards work in the ATM machines.
Banks are usually open weekdays from 9am to 5pm. Traveler’s checks may be cashed at any bank as well as Casa de Cambios. You may also change money with cambistas or money changers who hang out in the central area of most towns. |
