Monday, January 15, 2007

Banco Continental and Banco General Merge

Why Banks feel urge to merge?
One reason banks feel the urge to merge is to compete with a growing array of other financial service companies such as money market and other mutual funds, mortgage companies, credit unions and even the giant credit arms of industrial firms .
In less than a year, the panamanian bank center has been transformed like never before with four big moves (HSBC, Citibank, Banistmo). Being the latest one, the integration of Banco General and Banco Continental into BG Financial Group, Inc. with actives that surpases 1.7 Billion. The transition into "Banco General" trademark will be progressive.
Merges, sells, and the creation of new banking corporations with biggest assets and actives, have been gested to match the "expansionist momentum" in the area.
Behind all of this, obviously the Panama Canal Expansion and the financing of all the works related to this megaproject is a reason to go for it.
Besides that, the "panama real estate" booming, (one of the main reasons of the 8% economic growth in 2006) and electricity generation projects also come into play.

prensa.com spanish link here

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