Chief bank executives in Puerto Rico agreed that the financial system is going through one of its most solid moments in decades, largely driven by the fiscal discipline imparted by Governor Jenniffer Gonzaléz Colón throughout her administration. They spoke during the panel discussion on "Puerto Rico's Banking Sector" held as part of the AAFAF In Focus Investment Summit at the Convention Center.
The discussion, moderated by Francisco J. Domenech, Chief of Staff of the Government of Puerto Rico and Executive Director of the Puerto Rico Fiscal Agency and Financial Advisory Authority, brought together top local banking leaders, including Javier D. Ferrer, President and CEO of Banco Popular de Puerto Rico; Maritza Abadía, President of Banesco USA in Puerto Rico; Aurelio Alemán, President and CEO of First BanCorp, the parent company of FirstBank Puerto Rico; José R. Fernández, President and CEO of Oriental Bank; Carlos M. García, President and CEO of Nave Bank; and Antonieta Pérez, General Manager of Citibank in Puerto Rico.
A Strong and Sustained Recovery
In the context of fiscal stabilization and sustained economic growth, the banking executives emphasized that the sector has completely left behind the fragility of the past decade. They highlighted strong capitalization and liquidity levels, low non-performing loan ratios, and higher profitability. The positive impact of federal funds that continue to boost the economy reinforces this strengthening trend in the local financial sector.
Record Liquidity and Opportunities for Further Growth
The panelists underscored that this banking strength directly reflects the strength of the current economic environment. They celebrated historic capital and liquidity levels, with deposits doubling the volume of loans, which represents an extraordinary opportunity to channel those resources towards productive initiatives and greater economic growth. The executives emphasized that local banks are ready and willing to expand access to credit and energize the private sector, driving a vital investment and prosperity cycle.
Fiscal Discipline and Regulatory Framework
Governor Jenniffer González Colón, the keynote speaker of the event, reaffirmed her firm commitment to fiscal responsibility efforts, the goal of issuing the most recent audited financial statements of the Government, and the preparation of balanced budgets as part of the specific actions to achieve the dissolution of the Financial Oversight and Management Board. She highlighted the elevated cost of this body for everyone on the island.
On the regulatory environment, the banking executives stressed that they are prepared for the implementation of new regulatory provisions and view them as a platform for the sector's continued solid growth. Overall, the panel projected a clear and forceful narrative: the island's banking sector is solid, with capitalization and liquidity levels at historic levels, and enormous expansion potential to support sustained economic growth.
