The Honduran banking system is comprised of many domestically owned private banks , two foreign owned private banks, and the Public Central Bank, which controls all banking activities including the right to issue coins and bank notes . All banks or savings and loans are required by law to sell part of their assets to the Central Bank in gold or foreign exchange. The Central Bank then distributes the foreign currency among the other banks and institutions. In order to improve efficiency and foster increased inter-bank competition, the government has promoted a rapid deregulation of the financial sector. All indicators demonstrate that the country's banking system is liquid, solvent, and profitable.
All Honduran banks have corresponding relations with U.S. banks.
In response to past criticisms of banks' granting excessive, unsecured loans to major stock holders or bank principals, the Central Bank proposed a new financial law to restrict this practice, as well as to give the Superintendency of banks more control over the financial system and create a deposit insurance program. Commercial banks are overwhelmingly against the new law, however, has prevented its implementation. The 1990's have ushered in a number of bank reforms, such as the gradual deregulation of interest rates and the creation of stock exchanges in Tegucigalpa and San Pedro Sula that have served to raise equity through the issuance of publicly traded shares. Due to the banks' steep 36 to 42 percent, reserve requirements, average loan rates in 1996 have hovered around 36 percent. Foreigners may create, own and profit from a business.