The private banks Nicaragua has 10 private banks, a leasing company, and two non-bank finance companies. Many bank managers are U.S.-trained and had substantial U.S. banking experience during the 1980s. The financial ratios given below provide a snap-shot as of September 30, 1997. Capital adequacy is defined as the ratio of total bank capital to risk assets. Liquidity equals reserves divided by deposits.
Overdue loans are as a percentage of total loans.
Return on Equity is profit or loss divided by equity. Efficiency is the ratio of deposits to administrative expenses. All of BECA's creditors were reportedly compensated, except for the Central Bank which was owed around one million dollars. While Embassy files contain detailed financial data on ll banks, only the three largest banks are profiled below. At the end of 1997, they held a combined 48 percent of total private bank assets and generally exhibited the soundest financial ratios.