Chile's free trade agreement (FTA) with the European Union (EU) and the imminent agreement with the US could lure international banks to the local market to tap specific niches, according to Scotiabank Sudamericano's deputy CEO Joaquin Lagos.
International banks will be able to take advantage of the FTAs in projects related to corporate banking and the middle market, Lagos said, adding, factoring and leasing are two niches where international players could compete by bringing new technology and know-how.
The FTAs between Chile and the EU, and the US, are expected to boost foreign trade and foreign direct investment and should provide attractive business opportunities for international bankers.
However, Lagos said he does not foresee the FTAs spurring foreign banks into the highly competitive retail segment, which is already crowded with a large number of well-established players.
Source: BN Americas
