November 1, 2009
A successful banking operation in the country requires an effective and flexible risk management policy, as well as deep familiarity with local issues.BBVA Banco Provincial is Venezuelas third largest bank by assets, according to June 30 figures, trailing Banco Mercantil by a small margin and Banesco. But in key areas like profitability and quality of the loan book, the Spanish-owned entity gives local competitors a target to aim for in 2010.Being a Spanish bank, Provincial benefits from a different culture that is highly focused on efficient use of resources, says Pedro El Khaouli, banks analyst at Fitch in Caracas. They have sophisticated internal structures to moni
High inflation, a weakening currency and overt political intervention are just some of the reasons running a bank in Venezuela is more challenging than in other parts of LatAm.