Managing money in Costa Rica: banks, cooperatives and finance companies
There are different ways to manage money in Costa Rica, learn about some of the institutions that will help you in this task.
In Costa Rica there are cooperatives, banks and financial institutions; all institutions that help citizens take better care of their money.
What are they? What are they for? In this article we will mention some of their characteristics.
Banks
Banks in Costa Rica have several important functions and services in the economy of the country, some of the main functions of them are:
- Financial intermediation: Banks act as financial intermediaries, i.e., they receive deposits from customers and provide loans and other financial services.
- Financing: Banks are an important source of financing for businesses and individuals, as they provide loans to purchase homes, vehicles, machinery, among others.
- Payment management: Banks offer payment management services, such as wire transfers, credit and debit cards, and checks.
- Investment: Banks also provide investment services, such as buying and selling securities and mutual funds.
Why are banks important in Costa Rica? They are fundamental for the economic and social development of the country because they contribute to job creation, economic growth and the population’s well-being.
Also, banks are important for international trade, providing foreign exchange services and facilitating commercial transactions.
There are 3 state-owned banks and 11 private banks in Costa Rica:
There are other banks that also operate in Costa Rica, but these are some of the largest and best known.
Differences
Here are some of their main differences and functions:
- Ownership: The Banco Nacional de Costa Rica is owned by the State and is managed by a board of directors appointed by the government. Banco de Costa Rica is also owned by the State, but its board of directors is elected by the Legislative Assembly. Banco Popular, on the other hand, is owned by its members and managed by a board of directors elected by its members.
- Their approach: Banco Nacional de Costa Rica focuses on providing financial services to the general population and small and medium-sized enterprises (SMEs) and on financing infrastructure and development projects. Banco de Costa Rica focuses on providing financial services to companies and large corporations, as well as financing infrastructure and development projects. Banco Popular focuses on financial inclusion and providing financial services to low-income individuals and companies, as well as financing community development projects.
- The scope: Banco Nacional de Costa Rica has the largest number of branches throughout the country, followed by Banco de Costa Rica and Banco Popular. However, Banco Popular has a greater number of branches in rural and less developed areas.
- Their services: All of these banks offer a wide range of financial services, including savings accounts, checking accounts, personal and business loans, credit and debit cards, and electronic banking services.
Banco Central de Costa Rica
An important mention must be made to the Banco Central de Costa Rica.
The Banco Central de Costa Rica is the organization dedicated to controlling inflation and promoting the efficiency of the internal and external payment system in order to maintain its normal functioning.
To achieve this, it works together with the National Council for the Supervision of the Financial System (CONASSIF) and the Superintendencies to fulfill its objectives.
For Dr. Rodrigo Cubero, the Banco Central is responsible for the country’s monetary and exchange rate policy. Furthermore, the main objective of this entity is to maintain a low and stable inflation.
It is also explained that the bank’s responsibility for the exchange rate is focused on a certain type of intervention to avoid abrupt changes in the short term.
There are several current challenges for this entity, such as the reduction in the use of cash, the emergence of crypto-assets and technological platforms. To overcome them, a strategy has been adopted to promote electronic means of payment.
Cooperatives
Another option to take care of your money are cooperatives, which are organizations made up of individuals (people or legal entities) who join together to meet their economic, social and cultural needs and aspirations through a jointly owned and democratically managed enterprise where each member counts as one vote.
The intention of a cooperative is to meet the needs and aspirations of work, consumption, education, credit, etc.
There are different types of cooperatives, including credit unions.
In Costa Rica there are several cooperatives of this type (to mention a few):
These cooperatives will guide you financially to achieve the personal goals you have set for yourself.
Functions and differences
These are some of their main functions and differences compared to banks:
- Ownership: Unlike banks, which are owned by their shareholders, cooperatives are owned by their members. This means that members have the right to elect board members and to participate in important decision-making.
- Their focus: Credit unions focus on providing financial services to their members, rather than making profits for shareholders. Credit unions also focus on financial education and promoting savings among their members.
- The reach: Although cooperatives have fewer branches than banks, they have expanded in recent years and now offer services throughout the country. In addition, some cooperatives have a focus on serving specific communities, such as Coopejudicial which focuses on providing services to judicial workers.
- Their services: Credit unions offer a wide range of financial services, including savings accounts, personal and business loans, credit and debit cards, and electronic banking services. In addition, some credit unions offer additional services, such as insurance and remittance services.
Cooperatives are thus an attractive option for people seeking financial services with a focus on community and collective ownership.
Financial entities
It is the entity in charge of offering loans or cash financing facilities to individuals.
In Costa Rica there is:
What are their differences?:
- CAFSA Grupo Financiero: It is a financial institution focused on providing personal banking, corporate banking, investment banking, insurance and trust services. In fact, it is made up of several companies, including CAFSA Banco, CAFSA Seguros, CAFSA Fiduciaria and CAFSA Inversiones.
- COMECA: Is a credit and savings cooperative that offers financial services to its members, who own and manage the cooperative. COMECA offers a wide range of services, including savings accounts, personal and business loans, credit and debit cards, and electronic banking services.
- Grupo Financiero Improsa: It is a financial institution that offers personal banking, corporate banking, investment banking, insurance and trust services. In addition, it is comprised of several companies, including Improsa Banco, Improsa Seguros and Improsa Valores.
Financial institutions offer a wide range of financial services to their customers and partners.
Finally, each has a specific focus and scope, and it is important that consumers carefully evaluate their financial needs before selecting a financial institution.
List of SUGEF supervised entities
Here is the list of supervised entities by the Superintendencia General de Entidades Financieras (SUGEF), a supervisory body that strives for excellence and ensures the stability, soundness and efficient operation of the national financial system.
List
Banks
- Banco de Costa Rica
- Banco Nacional de Costa Rica
- Banco Popular y de Desarrollo Comunal
Finance companies
- Financiera Cafsa S.A.
- Financiera Comeca S.A.
- Financiera Desyfin S.A.
- Financiera Monge S.A
- Financiera Multimoney S.A.
Cooperatives
- Coocique R.L.
- Coopavegra R.L.
- Coopealianza R.L.
- Coopeamistad R.L.
- Coopeande No.1 R.L.
- Coopeaya R.L.
- Coopebanpo R.L.
- Coopecaja R.L.
- Coopecar R.L.
- Coopefyl R.L.
- Coopegrecia R.L.
- Coopejudicial R.L.
- Coopelecheros R.L.
- Coopemédicos R.L.
- Coopemep R.L.
- Coopenae R.L.
- Coopesanmarcos R.L.
- Coopesanramón R.L.
- Coopeservidores R.L.
- Coopeuna R.L.
- Credecoop R.L
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