Increased Competition Expected as Seven Financial Entities Eye Peruvian Market, Bank CEOs Express Growth Concerns
LIMA – PeruS financial sector is bracing for increased competition with the anticipated entry of seven new financial entities, while current bank leaders voice frustration over unrealized economic potential and call for improved fiscal discipline and infrastructure investment. The advancement comes as existing bank CEOs agree that greater competition will ultimately benefit both the financial system and consumers.
The potential influx of new players underscores a dynamic shift in the Peruvian financial landscape. However, despite optimistic projections tied to high commodity prices, leading bankers express concern that Peru is substantially underperforming its economic capacity. Diego Cavero, CEO of Banco de Crédito del Perú (BCP), stated the country should be growing at a rate of 7% to 8% given current commodity price levels, but currently anticipates only 3% growth, acknowledging, “(…) Frustrated because we must grow much more.”
Cavero also highlighted the prudent risk management practices within the financial system and BCP’s focus on diversification, facilitated by the rise of digital transaction channels like Yape. Carlos Tori, CEO of Interbank, emphasized the need for “coherence between the MEF and Congress regarding fiscal discipline,” while Sebastian Arcuri, CEO of Scotiabank Peru, drew attention to the country’s substantial infrastructure deficit, estimated at over US$100 billion.
The discussion unfolded amidst rising concerns over banking fraud, prompting collaboration between the BCR, MEF, and SBS to address emerging threats.
