By Nelson Bocanegra
BOGOTA, May 10 (Reuters) - Colombia has the right conditions for mergers and acquisitions in its banking industry, as well as new players, despite a wave of quarterly losses, and the country plans to refine regulations and improve procedures to expand the sector, its top regulator told Reuters.
Banks operating in the country saw profits fall by half to 925.4 billion Colombian pesos ($238.1 million) during the first two months of 2024, with 12 out of 29 banks reporting losses amid high interest rates and stubborn inflation.
However, even as loan portfolios have deteriorated, banks remain healthy with solvency indicators higher than demanded by authorities, said Cesar Ferrari, head of Colombia’s financial services regulator.
"When you look at the figures of the banking system, this is a system that has many possibilities. It must surely experience some mergers, some new entries," he said in an interview late on Thursday.
