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Commercial and Consumer Credit Market in Costa Rica - Rankings 2023.06 - Analysis and Perspectives

Credit market in Costa Rica as of June 2023 reached 49.9 billion, representing a decrease of 2.3% compared to the previous year. These data reflect the dynamics of the lending market in an economic and financial context that has faced significant challenges.
The 2023.Q2 ranking of the top five banks and financial entities with the highest year-on-year growth in their market share reveals interesting trends. The Banco Nacional de Costa Rica (BNCR) leads with a growth of 1.14% in its market share, closely followed by Banco Popular y de Desarrollo Comunal with 0.85%. This suggests that these financial institutions have been effective in capturing new customers and expanding their credit base in a challenging environment.
Commercial and Consumer Credit in Costa Rica
Highest year-on-year market share growth ranking
Credit outstanding receivables in CO$
Commercial and Consumer Credit in Costa Rica Highest year-on-year market share growth ranking Credit outstanding receivables in CO$
Additionally, the presence of financial and cooperative entities in the ranking, such as Financiera Multimoney, Coopealianza, and Coopenae, stands out. Their year-on-year growth in the credit market shows how these entities have also strengthened their position amid competition with traditional banks.
When analyzing the year-on-year variation by type of credit, marked differences in performance are observed. Some sectors have experienced positive growth, while others have faced significant contractions. For instance, the fishing and aquaculture sector stood out with an impressive growth of 134.22%, while agriculture, livestock, hunting, and related service activities experienced a decrease of 10.41%. Construction, purchase, and repair of real estate also suffered a decline of 5.22%, which may reflect the challenges faced by this sector in the country.

On the other hand, some key sectors for the Costa Rican economy, such as transportation and manufacturing industry, were also negatively affected, experiencing contractions of 14.56% and 13.04%, respectively. These data are a warning signal for economic authorities, as they might indicate a weakness in the country's productive activity and the need to implement policies that foster the recovery of these sectors.

In the case of consumer credit, there is an increase of 5.16%. This could be related to the growing demand which, in turn, can have a positive impact on the economy, as long as it is managed responsibly to avoid excessive household debt.

Another relevant piece of information is the plummet of 80.83% in credit destined for the public administration. This abrupt decrease may indicate restrictive fiscal policies or a reduction in public spending, which could have implications on investment and economic development in the country.
In conclusion, the commercial and consumer credit market in Costa Rica faces various challenges and opportunities. While some sectors recover and show growth, others struggle to maintain their economic viability. The data provided offers a snapshot of the current situation and the role of financial institutions, both banks and cooperative entities, will be crucial in driving the country's economic recovery in the coming years.