The competition in the banking sector Colombia is gaining strength. According to information from Asobancaria, the number of banking entities has increased, reaching a total of 29, and has reached its highest level in two decades.
According to a note from The Republic of Colombiathe entity indicates that this increase places Colombia among the countries with the largest number of banks in the region, surpassing some of the Pacific alliance like Chile and Peru, with 18 and 16 banking entities respectively.
“This contributes to improving competition in the credit market and provides consumers with a greater variety of options when applying for financing or when choosing savings and investment products,” says Jonathan Malagón, president of Asobancaria.
For the union, this represents a benefit for the clients and consumersas it shows that there is a high supply in this market in the country.
According to the most recent Banking and Economics document published by the Association, the Colombian banking sector is characterized by a healthy level of competition, with moderate concentration and declining market power.
“In it Bank SystemHowever, the search for greater competition cannot and should not jeopardize consumer confidence in the sector, financial stability and increased inclusion”, notes the report.
Source: Gestion
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