High interest rates, which led to a fall in credit, as well as a brake on the economy, Throughout the year, it becomes a key risk to take into account in the financial system.
(Join our WhatsApp channel to get all economic information from Colombia and the world).
The dynamics of interest rates will determine the profitability of fixed income investments and investment projects on different fronts, which are pending.
For that reason, it is Expectations are rife that the Republika Srpska will start cutting interest rates. The financial watchdog presented an overview of the risks and clarified that they reflect the current moment, which may change in the near or medium future.
(See: Annual Economic Activity in Colombia Grows 1.7% in June).
1
The behavior of the economy, employment and inflation are reflected in households’ foreign exchange holdings and their financial burden. In many sectors there is pressure on financial constraints and solvency, Impact on credit risk exposure of supervised entities.
2
An investment portfolio of supervised entities can be a source of uncertainty Expectations about rates and futures are incorporated into the investment strategy Expected utility depends on which perspectives are aligned with monetary policy decisions.
(See: Anif raises fresh alarm over country’s financial situation).
3
Cyber threats, received Factors
Local and International GeopoliticsAmong other things, it can mean greater exposure to operational and reputational risk, while a cyber attack can be disruptive.
Trust of users and customers in any organization.
Cyber attack
4
According to the Basel AML index, Colombia is positioned as the fifth country with the lowest risk of money laundering and terrorist financing in Latin America and the Caribbean. Some financial structure derives from the implementation of prevention, detection and sanction mechanisms for money laundering.
5
In terms of pensions, no significant improvements in contribution levels are expected under either regime. It has created an expectation A reform reduced the number of transfers between regimes and between rice administrators (Private), awaiting further confirmation of results in Congress.
(See: Inflation eases: Govt reacts to May data).
6
The development of civil works and construction and development of projects like Mi Casa Ya could be positive for the trust with more business to be maintained. In Management of Mutual Funds and Equity Funds
Private will continue to be attractive with higher fees.
7
In the insurance industry, inflation is a
Growth in costs and accident components does not always translate to rates, and the change in demand for insurance results in lower income households and
Companies. Also, there is uncertainty about Sod.
(See: Colombian economy to grow 1.1% in 2023, according to World Bank).
8
Compared to other costs considered by insurers and with the impact of technical decisionsAnalysts warn of uncertainty in reinsurance cost behavior for 2024 renewals.
Summary
