The Banking and Financial Groups Law

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The Banking and Financial Groups Law assembles all legislation regulating the creation, organization, merger, operation, and liquidation of banks and financial groups. This includes the establishment and closing of bank branches and foreign banks.

All private banks will be constituted as anonymous societies. Foreign banks will be able to establish offices within Guatemala’s territory, but they must register representational offices in the country before the start of operations. The Monetary Council is responsible for approving or denying the banks’ request for establishment. All institutions must submit a feasibility study with their application. 

The Banking Regulator must ensure that each institution’s feasibility study justifies the sustainability of all entities. It should also ensure that the initial capital, financing sources, organization systems and management infrastructure guarantee the institution's savings and investments.

Document Details

Title (Non-English): 
Ley de Bancos y Grupos Financieros
Document Type: 
Document Topic: 
Doument Author (Entity): 
Authoring Country: 
Originating Country or Trade Block: 
Issue Status: 
Year of Document: 
2002
Date of Document: 
Wednesday, May 15, 2002
Document Authors: 
Congress of the Republic of Guatemala
Language (This Document): 
Spanish

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