Colombian banks keep profits in pockets

Colombia’s banks are keeping half of their 2008 profits in their
pocket, because of the current financial crisis. 1.7 trillion pesos
(US$661 billion) will not be distributed to shareholders.

The banks decided to keep a reserve in case the financial crisis affects the economy too much and the banks will have to step in.

“they withheld some forseeing that at the moment that the crisis affects the country in some way, the sector has the strength to manage the situation,” María Mercedes Cuéllar, President of Colombia’s banking association told Caracol Radio.

According to Cuéllar, it is a big advantage for the whole country that its financial system is not producing losses, like in most parts of the world.

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