Venezuela continues to advance in the application of digital technology in its banking system, where transactions in this modality are at 99.1 %.

The president of the Venezuelan Banking Association, Pedro Pacheco: “We are in an extraordinary moment,” when addressing the issue of new technologies, ethics and regulation.

He argued that although the country is lagging in the technological field, initiatives have been applied to counteract what he considers “a decade of disinvestment.”

Pacheco was optimistic about the digitalization of the banking apparatus, stating that there is “a rebirth and an awareness of the need to catch up” on technological issues and Banking has a fundamental role.

The national banking system “has been making strong progress on issues that we had lagged behind, such as contactless,” he added.

He noted that in June the Superintendency of Banking Sector Institutions (Sudeban) published regulations to regulate the opening of digital bank accounts, as well as electronic contracts, biometric security system, among others.

Pacheco highlighted that in Venezuela, “99.1 % of digital transactions exceed the in-person operation of going to an agency. The (transaction in) agency practically today means less than 1%.”

Regarding financial inclusion, the president of the Venezuelan Banking Association indicated that “84 % of Venezuelans have a bank account. “We are leaders in Latin America when it comes to inclusion and banking.”

It is estimated that by the end of 2024, 70 % of operations will have reached contactless points of sale.

M.Pino

Source: eldiariodeguayana

(Reference image source: Unsplash+, in collaboration with Oleg Ivanov)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Digital transactions in Venezuela are about to reach a 100 % apareció primero en Bitfinance.

In the opinion of Pedro Pacheco, president of the Banking Association of Venezuela (ABV), the massification of credit in the country will take time.

In an interview with Unión Radio on March 7, the president of the ABV indicated: “The solution to the lack of credit in Venezuela involves stabilizing macroeconomic policy and restructuring the external debt, since the country defaulted in 2017.”

According to Pacheco, it is necessary to first resolve, or at least work on it in parallel, the problem of default. Likewise, large capital is required, the restructuring of the debt and that “the terms of how it will be paid be stated.”

Until these crucial issues are addressed, “financing will be very restricted.”

Although credit increased 90 % in the last year, it is insufficient. Pacheco mentioned that currently a credit card “can have a limit between $100 and $150,” which is very little.

In this sense, he said that since the end of 2023, the review of the limit amounts of credit cards began. And although different national banks have already made adjustments, the limit is still insufficient.

M.Pino

Source: finanzasdigital

(Reference image source: Emil Kalibradov at Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Massification of credit in Venezuela will take time apareció primero en Bitfinance.

The new executive president of the Venezuelan Banking Association, ABV, is Pedro Pacheco Rodríguez, a professional with extensive experience in the national financial circle.

Pacheco will be in charge of the executive presidency for one year, following the statutes of the banking union, after it was occupied by José María Nogueroles.

The new president of ABV has 30 years of experience “in the area of management consulting and is a senior partner of PwC Venezuela and president of PwC Services, C.A. Among his functions as a partner within PwC, the following stand out: partner in charge of the financial sector, partner in charge of the human management function, and member of the Executive Committee of the Latin American Network”.

For his outstanding work, he was recognized in 2021 as Entrepreneur of the Year by the Caracas Chamber of Commerce and Industry. Likewise, the Miranda State College of Public Accountants awarded him the Order of Excellence.

M.Pino

Source: eldiariodeguayana

(Reference image source: social networks)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Banking Association of Venezuela appoints Pedro Pacheco Rodríguez as new president apareció primero en Bitfinance.

The Venezuelan Banking Association (ABV) alerted the Central Bank of Venezuela (BCV) about the difficult liquidity situation facing the banking system and requested the revision of the legal reserve rate of 93% and other measures that alleviate the pressure expressed at rates above 1,500% in the overnight interbank loan market or «Overnight».

“Throughout 2020, an increase in operations and in the interest rates negotiated in the interbank market became evident. On average, the rates were 161.53%, registering in the months of April and August, interests that reached the levels of 329.8% and 323.8%, respectively, with daily maximums of 980.6% “, describes the ABV document.

What the bankers’ communication reveals is that the weight of an excessively restrictive liquidity policy places the system in a serious situation of illiquidity, which has now reached a serious level, similar to the marks of April and September last year. as published by the Banca y Negocios media.

What does the Banking Association of Venezuela request?

– The revision of the percentage of legal reserve that remains at 93% of public deposits.

– Urgently approve a system that regularly increases legal reserve deductions, since the most recent, which amounted to 30 trillion bolivars, approved on September 17, has already lost all effect, since it is only equivalent to 7 , 1% of current requirements. According to the union’s calculations, an additional reduction of 88.3 billion bolivars is required “to reach a situation equivalent to September 2020.”

– The revision of the method for calculating the financial costs -very onerous for the system- derived from the deficits of legal reserve, «which currently takes as a reference the variation of the Investment Index (IDI), given that in the periods in which the exchange rate shows volatility, this can make banking institutions incur costs with substantial impacts on their financial statements, affecting in a real way their stability and continuity ”.

It should be remembered that the IDI is a value index that is indexed to the variation of the exchange rate and, therefore, implies an indirect dollarization.

January has become an especially critical period for bank liquidity. In the ABV statement, it is revealed that the costs for reserve requirements rose to maximum of 1,967% and 1,742% on January 5 and 6, respectively.

A “situation that can hardly be managed by banking institutions and that are the product of structural elements of the economy, since the coverage of the legal reserve can be met with a stable growth in the flow of funds, but it is difficult when there is volatility as occurs currently due to the change in seasonality ”.

The social impact of this situation is the contraction of bank credit, an indispensable tool to support an eventual recovery of the economy.

G. Febres

With information from the ABV and Banca y Negocios

La entrada ABV alerts regarding illiquidity in banks and requests the BCV to review the legal reserve apareció primero en Bitfinance.