Banking in Nicaragua

Banking in Nicaragua refers to its financial system, which includes private and state-owned banks, microfinance institutions, financial cooperatives, and insurance providers. All institutions are regulated by the Superintendency of Banks and Other Financial Institutions (SIBOIF), which makes sure there compliance with domestic laws and international standards. The Nicaraguan banking sector has faced many changes and significant restructuring, marked by nationalization, liberalization, and regulatory reforms. It is currently considered stable, with banks remaining well-capitalized and liquid.

Remittances play an important role in Nicaragua’s economy and financial system, since they account for over a quarter of the country’s GDP in recent years. However, the banking structure has been affected by political developments, U.S. sanctions, and new domestic legislation, influencing the structure and independence of the banking sector.