[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-108177-en":3,"doc-seo-108177-105":30,"detail-sidebar-cat-0-en-105":92},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":13,"seo_description":14,"update_tm":28,"read_time":29},108177,687197100911,"Himbo","https://ap-avatar.wpscdn.com/avatar/a000239b6f1da00475?x-image-process=image/resize,m_fixed,w_180,h_180&k=1785132997149421697",8,"Research & Report","Costa Rica - Financial Sector Assessment Program - Technical Note - State’s Role in Financial Sector","Technical note from the World Bank Group analyzing the State’s role in Costa Rica’s financial sector under the Financial Sector Assessment Program (FSAP). It traces the historical evolution of state banking footprint, reviews functional and financial performance aspects, and assesses how regulatory and competitive distortions influence public financial institutions. The note evaluates the System for Development Banking (SBD) and Banco Popular, examines forward-looking constraints and recommendations, and frames policy options to enhance development impact and support continuous market liberalization.","Public Disc losure Authorized  \nTHE WORLD BANK GROUP  \nCOSTA RICA  \nFINANCIAL SECTOR ASSESSMENT PROGRAM  \nSeptember 2022  \nTECHNICAL NOTE  \nSTATE’S ROLE IN FINANCIAL SECTOR  \nPub lic Disc losure Authorized  \nPrepared By  \nFinance, Competitiveness, and Innovation Global Practice, WBG  \nThis Technical Note was prepared by Marius Vismantas and Faruk Miguel Liriano in the context of a World Bank Financial Sector Assessment Program (FSAP) mission to Costa Rica during June 29 – July 14, 2022, led by Mariano Cortes and Oliver Masetti.  \nCONTENTS  \nExecutive Summary_______________________________________________________________________________ 4  \nIntroduction ______________________________________________________________________________________ 8  \nFunctional Assessment ___________________________________________________________________________ 9  \nFinancial and Economic Performance ___________________________________________________________ 10  \nSistema Banca para el Desarrollo _____________________________________________________________ 10  \nBanco Popular________________________________________________________________________________ 18  \nOperational Environment________________________________________________________________________ 21  \nForward View and Recommendations ___________________________________________________________ 23  \nCompetitive asymmetries_____________________________________________________________________ 23  \nSistema Banca de Desarrollo__________________________________________________________________ 24  \nBanco Popular________________________________________________________________________________ 24  \nState ownership of two largest banks in the system and INS _________________________________ 25  \nAnnex ___________________________________________________________________________________________ 27  \nTables and Figures  \nTable 1: Financial sector structure________________________________________________________________ 8  \nTable 2: Competitive asymmetries_______________________________________________________________ 22  \nFigure 1: Utilization of SBD funds________________________________________________________________ 12  \nFigure 2-SBD credit portfolio, average interest rate, credit size and credit allocation___________ 14  \nFigure 3-SBD credit portfolio by firm size, gender, and currency _______________________________ 15  \nFigure 4-SBD and SFN credit portfolio – sectoral breakdown __________________________________ 16  \nFigure 5 – Percentage of financial inclusion _____________________________________________________ 17  \nFigure 6 – Banco Popular, credit share and growth ______________________________________________ 19  \nFigure 7 – Banco Popular – Assets and liabilities decomposition ________________________________ 20  \nGLOSSARY  \nBANVHI Banco Hipotecario de la Vivienda  \nBP Banco Popular y de Desarrollo Comunal  \nCBA Cost-benefit analysis  \nCREDES Créditos de Desarrollo  \nINS National Insurance Institute  \nFCD Fondo de Crédito para el Desarrollo  \nFOFIDE Fondo de Financiamiento para el Desarrollo FONADE Fondo Nacional para el Desarrollo  \nGAM Gran Área Metropolitana  \nMSMEs Micro, small, and medium enterprises SBD Sistema Banca para el Desarrollo  \nSFN Sistema Financiero Nacional  \nSOBs State-owned commercial banks  \n EXECUTIVE SUMMARY  \n1. The history of the state’s footprint in Costa Rica’s financial sector goes back a longtime, with sector liberalization being a fairly recent phenomenon. Banco de Costa Rica, the first state owned bank was established in 1877. Banco Nacional de Costa Rica and Instituto Nacional de Seguros were established in 1914 and 1922, respectively. For many decades since their establishment these financial institutions had monopoly powers in their sectors, supporting an economy dominated by the state. State banking monopoly ended in 1995 when private and foreign banks entered the deposit market. The 2009 ratification of CAFTA-DR ended the state’s monopoly in the insurance sector. ","cbCaiv9CyYs8BLJv","https://ap.wps.com/l/cbCaiv9CyYs8BLJv","pdf",603405,6,1,31,"English","en",105,"# Executive Summary\n# Introduction\n# Functional Assessment\n## Financial and Economic Performance\n## Sistema Banca para el Desarrollo (SBD)\n## Banco Popular\n## Operational Environment\n# Forward View and Recommendations\n## Competitive asymmetries\n## Sistema Banca de Desarrollo\n## State ownership of two largest banks in the system and INS\n# Annex","[{\"question\":\"How did the State’s footprint in Costa Rica’s financial sector evolve historically?\",\"answer\":\"State banking monopoly began with early state-owned institutions established in the late 19th and early 20th centuries, then ended in parts of the system as private and foreign banks entered deposits in 1995. The insurance monopoly ended after CAFTA-DR was ratified in 2009, and the SBD was later created in 2008 to support development and inclusion priorities.\"},{\"question\":\"What is the core policy focus of the technical note regarding state involvement?\",\"answer\":\"The note emphasizes the need for regular, evidence-based reviews based on public finance and developmental impact. It highlights whether public investment stock, income flows, and regulation-influenced funding flows can be redirected toward investments and funding with higher developmental impact.\"},{\"question\":\"What role does SBD play and what challenges does the note identify?\",\"answer\":\"SBD is described as a good transitional system for development finance, with strengths such as a guarantee fund, an entrepreneurship development network, and targeting underbanked MSMEs. The note also indicates that the funding flow framework is unnecessarily complex and overly operationally dependent.\"}]",1784469310,78,{"code":4,"msg":31,"data":32},"ok",{"site_id":25,"language":24,"slug":33,"title":13,"keywords":34,"description":14,"schema_data":35,"social_meta":87,"head_meta":89,"extra_data":91,"updated_unix":28},"costa-rica-financial-sector-assessment-program-technical-note-states-role-in-financial-sector","",{"@graph":36,"@context":86},[37,54,69],{"@type":38,"itemListElement":39},"BreadcrumbList",[40,44,48,51],{"item":41,"name":42,"@type":43,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":45,"name":46,"@type":43,"position":47},"https://docshare.wps.com/document/","Document",2,{"item":49,"name":12,"@type":43,"position":50},"https://docshare.wps.com/document/research-report/",3,{"item":52,"name":13,"@type":43,"position":53},"https://docshare.wps.com/document/costa-rica-financial-sector-assessment-program-technical-note-states-role-in-financial-sector/108177/",4,{"url":52,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":24,"description":14,"dateModified":62,"datePublished":63,"encodingFormat":61,"isAccessibleForFree":64,"interactionStatistic":65},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":41,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-07-30","2026-07-19",true,{"@type":66,"interactionType":67,"userInteractionCount":20},"InteractionCounter",{"@type":68},"ViewAction",{"@type":70,"mainEntity":71},"FAQPage",[72,78,82],{"name":73,"@type":74,"acceptedAnswer":75},"How did the State’s footprint in Costa Rica’s financial sector evolve historically?","Question",{"text":76,"@type":77},"State banking monopoly began with early state-owned institutions established in the late 19th and early 20th centuries, then ended in parts of the system as private and foreign banks entered deposits in 1995. The insurance monopoly ended after CAFTA-DR was ratified in 2009, and the SBD was later created in 2008 to support development and inclusion priorities.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"What is the core policy focus of the technical note regarding state involvement?",{"text":81,"@type":77},"The note emphasizes the need for regular, evidence-based reviews based on public finance and developmental impact. It highlights whether public investment stock, income flows, and regulation-influenced funding flows can be redirected toward investments and funding with higher developmental impact.",{"name":83,"@type":74,"acceptedAnswer":84},"What role does SBD play and what challenges does the note identify?",{"text":85,"@type":77},"SBD is described as a good transitional system for development finance, with strengths such as a guarantee fund, an entrepreneurship development network, and targeting underbanked MSMEs. The note also indicates that the funding flow framework is unnecessarily complex and overly operationally dependent.","https://schema.org",{"og:url":52,"og:type":88,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":90,"canonical":52},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":93},[94,98,102,106,111,115,120,123,128,131,135],{"id":21,"doc_module":4,"doc_module_name":46,"category_name":95,"show_sort_weight":96,"slug":97},"Story & Novel",90,"story-novel",{"id":47,"doc_module":4,"doc_module_name":46,"category_name":99,"show_sort_weight":100,"slug":101},"Literature",80,"literature",{"id":53,"doc_module":4,"doc_module_name":46,"category_name":103,"show_sort_weight":104,"slug":105},"Exam",70,"exam",{"id":107,"doc_module":4,"doc_module_name":46,"category_name":108,"show_sort_weight":109,"slug":110},5,"Comic",60,"comic",{"id":20,"doc_module":4,"doc_module_name":46,"category_name":112,"show_sort_weight":113,"slug":114},"Technology",50,"technology",{"id":116,"doc_module":4,"doc_module_name":46,"category_name":117,"show_sort_weight":118,"slug":119},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":46,"category_name":12,"show_sort_weight":121,"slug":122},30,"research-report",{"id":124,"doc_module":4,"doc_module_name":46,"category_name":125,"show_sort_weight":126,"slug":127},9,"Religion & Spirituality",20,"religion-spirituality",{"id":126,"doc_module":4,"doc_module_name":46,"category_name":129,"show_sort_weight":126,"slug":130},"World Cup","world-cup",{"id":132,"doc_module":4,"doc_module_name":46,"category_name":133,"show_sort_weight":132,"slug":134},10,"Lifestyle","lifestyle",{"id":136,"doc_module":4,"doc_module_name":46,"category_name":137,"show_sort_weight":107,"slug":138},19,"General","general"]