Banks in Puerto Rico can offer international banking opportunities with most of the same protections of a stateside bank. That's because, Puerto Rico banks fall under the governance of the Federal Reserve and FDIC, because it's a self-governing unincorporated territory of the United States. However, this doesn't mean that working with banks in Puerto Rico is the same in all aspects. They still have their own local identity and rules of business, even though the regulatory and monetary systems are the same as the U.S.

The United States and it's citizen are by far the largest outside investor in Puerto Rico banks and other businesses. Should your company want to work directly with the Puerto Rican government the two largest state owned banks are the Government Development Bank and Economic Development Bank. As for international banking in Puerto Rico, Citibank and Firstbank are the primary U.S. banks with branches in Puerto Rico. However, before you decide to work with a bank, there a few items to consider, such as:

1. Understand the local economics related to commercial banks in Puerto Rico.

2. Review the capital investment and tax system under which Puerto Rico banks operate.

3. Contact banking institutions in Puerto Rico about their services.

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Evaluate the local Puerto Rico banking economy

Most often, the banking system in a country is only as good as the economy under which it conducts business. Puerto Rico is a bit different, because its banks have the full faith and support of the United States government. However, this axiom still holds true, but to a lesser extent with Puerto Rico. Therefore, it's still a good idea to know the basic growth rates and structure of the Puerto Rican economy prior to working with the banks.

I recommend: Compare the economic indicators of Puerto Rico provided by The World Bank Group to worldwide averages presently. Call the local government offices listed at the U.S. Department of Housing and Urban Development to obtain the very latest economic information and tips on working with banks in Puerto Rico.

Examine the taxation and capital investment atmosphere of the Puerto Rico banks

Before you commit time and resources to working with Puerto Rican banks, you'll need to know the tax implications and any capital investment restrictions.

I recommend: Use the information provided by LETSGOTOPONCE.com, a web publication of I:Avalanche, for capital investment for Puerto Rico business. Study the Taxation tutorial from PRIDCO (Puerto Rico Industrial Development Company of the Commonwealth of Puerto Rico) to help your business minimize the loss of capital to taxation.

Make note of the services that business banks in Puerto Rico provide

When working with banks in Puerto Rico, you really have three alternatives. You can choose an international, local or governmental bank. The simplest one to work with is usually the international bank, since they have offices all over the world, which makes the process more convenient. Local and governmental banks, however may provide more local business knowledge and insight that can be invaluable when banking in a foreign territory.

I recommend: Contact Citibank for an international bank in Puerto Rico. Use the services of Government Development Bank for Puerto Rico should you need to work directly with the government. Speak with a representative of the Firstbank of Puerto Rico or WesternBank for local banking service. Firstbank also has offices in the U.S., but it's a local bank.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some Puerto Rican nationals still refer to the Dollar as the Peso, the former currency of the country. Therefore, be sure to clarify if the representative means the Mexican peso, which is the currency of Mexico or if they are referring to the American Dollar when working with a bank in Puerto Rico.

There is no Central Bank in Puerto Rico, but the U.S. Federal Reserve Bank takes on that responsibility. The Federal Deposit Insurance Program also guarantees all deposits up to $100,000.

Electronic banking is growing in popularity in Puerto Rico. There are also all basic banking services in Puerto Rico. Residents use Automated Teller Machines to bank. They're known as ATH's, a name that comes from the initials of the first electronic banking system developed in Puerto Rico.

In this guide, you'll read how to:

1. Learn how banking is handled in Puerto Rico.
2. Find banks in Puerto Rico that fit your business needs.
3. Get the best deal on services and interest rates from banks in Puerto Rico.

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Do some research into how banking in Puerto Rico works

Doing business banking in Puerto Rico is not necessarily the same as doing business in the United States. To protect yourself and your business, read up on how the system works before opening accounts.

I recommend: DoingBusiness.org explains how to get credit in Puerto Rico. Also read about how to protect investors in Puerto Rico. The Community Banker gives you a list of Puerto Rico banks. This includes commercial banks in Puerto Rico like Firstbank of Puerto Rico.

Find banking institutions in Puerto Rico

There are several banking institutions in Puerto Rico, but not nearly as many as there are in the United States.

I recommend: Use this directory by AAA Dir to find banking institutions in Puerto Rico. It explains commercial and personal banking options. Western Bank Puerto Rico offers commercial and personal banking.

Know that Banco Popular is the largest bank in Puerto Rico

Banco Popular has been operating in Puerto Rico since 1893. It's been in the United States for more than 50 years. It's the parent company of other commercial banks in Puerto Rico, too.

I recommend: Check out Banco Popular de Puerto Rico's website. They can help you with all your commercial banking needs, including loans and lines of credit and small commercial investments. Or, you may only need to open a checking account for your company.

Shop around among Puerto Rico banks for the best services

Competition runs rampant between banks in Puerto Rico. You should shop around for the best services, lowest interest rates and service charges.

I recommend: First Bank Puerto Rico offers commercial and personal banking services. Check out the website for more information. If you speak Spanish, take a look at AAA Concordia Mortgage Corporation and Doral Bank. Both banking institutions in Puerto Rico offer a variety of services.

The banks in Puerto Rico basics are similar to that of the United States as it's a self-governing unincorporated territory of the U.S. This connection gives the Federal Reserve and FDIC governance over the Puerto Rican banking system. There are, however, certain differences that any business must understand, if they want to pursue international banking in Puerto Rico. For instance, the Federal Reserve allows Puerto Rico to set its own rates and banking standards as long as they aren't usury.

The commercial banks in Puerto Rico also use the Dollar as their primary currency. That way, your company doesn't have to worry about any currency conversion like other international banks. That said, there are still regulatory and economic issues when a company chooses to bank in Puerto Rico. The economic situation is unique just like any other outside the U.S., as is the local banking industry. Therefore, before you decide to open an account to bank in Puerto Rico, there a few items to consider, such as:

1. Examine the basic economic and business environment of Puerto Rico banking.

2. Stay current on the latest Puerto Rico banking regulations and news.

3. Review the basic account options available when banking in Puerto Rico.

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The best contacts and resources to help you get it done

Know the business banks in Puerto Rico industry and current business climate

Puerto Rico's economy isn't directly tied to the U.S. Therefore, a stable economic climate in the American banking system doesn't necessarily translate to Puerto Rico. That's why it's important to know the current state of Puerto Rican banks before investing in them. This banking environment includes basic tax rates and economic growth.

I recommend: Review the corporate tax laws summary from DeltaQuest for any business that operates in Puerto Rico. Monitor the current economic conditions in Puerto Rico using the information provided by the Federal Deposit Insurance Corporation.

Recognize the current news and basic regulations regarding banking institutions in Puerto Rico

With banking becoming a truly global enterprise, the regulations and the stability of the industry can change given the current climate. In order to stay on top of these changes, you'll need to contact local authorities and utilize banking industry news websites, which not only helps you learn the basics of banking in this country, but it also allows you to adjust quickly to any changes in these basic rules. It's a good idea to never take any regulation for granted when opening a bank account outside the United States.

I recommend: Contact the Federal Reserve Bank of New York's Community Development Financial Institutions in Puerto Rico, if you have any questions about the local banking industry regulations. Use the updates from Banking Industry Today to stay current on any breaking news regarding Puerto Rican banks.

Speak to a banking services in Puerto Rico representative

It's best to choose a bank in Puerto Rico that also has branches or services in the United States, especially if you're new to banking outside the United States and need to learn the basics. This will allow you more access to banking options and services. However, if you're comfortable with banking locally, you can choose a local developmental bank.

I recommend: Talk to a banking specialist at Government Development Bank for Puerto Rico, if you're looking for local banking options. Contact a banking representative at Citibank to open an account with an international bank that has offices throughout the United States.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Puerto Rico banks, while having a direct connection to U.S., aren't the same when it comes to security. Therefore, it's imperative that your company obtain all the rules and regulations in writing and review them before opening an account. This doesn't mean that your money isn't safe, but there can be confusion on account liability limits, charges, fees and other similar items, because it's still a different banking culture.
• •  Understand that since the FDIC insures Puerto Rico banking services, each account receives insurance up to a $100,000 depository limit. If your company has more than that, it's prudent to split it up into different accounts to take advantage of this insurance limit, should the bank become insolvent.

With Puerto Rico being an unincorporated territory of the United States, the banks in Puerto Rico are part of Federal Reserve System. This means that Federal Deposit Insurance Corporation guarantees each deposit in these banks up to $100,000. However, there are some subtle differences. For example, Puerto Rico has its own regulatory agency and access to regional developmental banks. Before making any deposits in a Puerto Rican bank, here are some key terms to learn:

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Government Development Bank for Puerto Rico

The primary role of the Government Development Bank for Puerto Rico is to promote infrastructure development projects within the country. If you want to do business in Puerto Rico, chances are you'll need the help of the Government Development Bank.ank.

I recommend: Review the information available at the Government Development Bank for Puerto Rico website.r Puerto Rico website.

U.S. Federal Reserve Bank

The U.S. Federal Reserve Bank establishes the monetary policy for banks in Puerto Rico, which fall under the jurisdiction of the Federal Bank of New York. When the Federal Reserve announces statements of policy it'll influence interest rates offered by Puerto Rican banks.nks.

I recommend: Assess the Puerto Rican profile from the Federal Reserve Bank of New York.erve Bank of New York.

Federal Deposit Insurance Corporation (FDIC)C)

The Federal Deposit Insurance Corporation insures bank account in Puerto Rico, as it does anywhere else in the United States. If a Puerto Rican bank were to become insolvent, you'll need to contact the FDIC to recoup your accounts up to $100,000.100,000.

I recommend: Examine the mission statement from the Federal Deposit Insurance Corporation.t Insurance Corporation.

Credit ratings

Credit ratings are a convenient way to establish the solvency of a Puerto Rican Bank. Credit ratings take into account many different factors in determining if the deposits are stable.

I recommend: Evaluate the information available at Banking My Way to understand bank credit ratings. To purchase individual Puerto Rican banking credit ratings reports, review the documents at the Alacra Store.2FPR_171180_600023470' target='_blank'>Alacra Store.

Office of the Commissioner of Financial Institutions

The Office of the Commissioner of Financial Institutions regulates the banks in Puerto Rico. If your company has any doubts about the security or integrity of a bank, this is the entity you'll need to contact.act.

I recommend: Study the Office of the Commissioner of Financial Institutions website for more information. website for more information.

American peso

When banking in Puerto Rico, local representatives refer to the currency as the peso, but it's actually the dollar. Local residents still

I recommend: