Four Banks Contemplate Factoring Business


Four Chilean banks are contemplating the possibility of adding factoring to their financial product line-up, local financial daily Estrategia reported.

The four banks all have foreign owners - BBVA Banco Bhif, Banco Sudameris, Citibank and BankBoston - and have held informal talks with Chile's factoring company association (Achef), according to the paper.

The factoring business is currently dominated by locally owned banks such as Bci, which had a 19.7% market share in the segment when the first half of 2002 closed. Corpbanca and Security also have significant presence with 17.28% and 16.14% respective market shares.

Spanish financial group SCH will be ranked fourth in the factoring ranking when it completes the merger involving its two Chilean entities Santiago and Santander Chile. The two banks will end up with a consolidated factoring market share of around 16%.

Source: Business News Americas



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