Bank of the Year 2018 -- El Salvador: Banco Agrícola

Bank of the Year 2018 -- El Salvador: Banco Agrícola

“In economics, we talk about the multiplier effect,” says Rafael Barraza, president of Banco Agrícola in explaining his institution’s continued commitment to the region’s social infrastructure. “For example, every credit dollar we provide to a new business or individual can be passed down in the form of consumables, like food. That translates to an investment in agriculture and its accompanying processing and supply chains.

“This multiplier effect requires an investment in the form of credit, which through the resources and structure of Banco Agrícola, we are able to support.”

The bank, a subsidiary of Grupo Bancolombia, maintains a 30% market share in the Salvadorian banking sector and one of the largest credit portfolios in the country at $1.6 billion. Barraza puts Banco Agrícola’s participation in the local mortgage market at $455 million. He estimates the bank’s direct contribution to the economy, through both its lending and cash flow, achieves an economic impact of $1.3 billion.

Banco Agrícola has shown it is committed to the development of the local economy and the environment through its adoption of the nation’s first green loan program. In July, the bank announced it would create a $40 million fund aimed at sustainable enterprise development. Banco Agrícola offers resources to companies seeking to finance energy efficiency, renewable power generation and other sustainable environment measures.

“The bank is focused on contributing in profitable, sustainable economic development while identifying new sources of income and businesses that bring the most value to our clients,” according to Ana Marin, Banco Agrícola’s vice president of strategy and finance. LF