Banks in Colombia Key Terms

Utilize the Banks in Colombia key terms to assist your company's asset allocation

The Colombian banking system is one previously associated with money laundering due to the country’s drug trade. However, that image is not the reality of the Colombia banks today. There are still tough money laundering laws that ensure the veracity of the banking practices, but there are also some excellent investment opportunities. You just need to understand how to spot them and when the opportunity exceeds the risk. Learning the banks in Colombia key terms can provide an excellent beginning to this educational process. The more Colombia banking knowledge you can accumulate, the easier the asset allocation decision becomes.

Central Bank of Colombia

The Central Bank of Colombia or the Banco de la Republica as it's known in Colombia, issues and manages the currency of the banking system in the country. Aside from monetary policy, the Central Bank of Colombia has the responsibility to maintain a stable financial system.

Banco de Bogota

The Banco de Bogota or the Bank of Bogota is one of the largest banks in the country. It also has offices in New York and Miami for better banking convenience. The bank is a subsidiary of the AVAL holding company.

Bancolombia

Bancolombia usually ranks at or near the top of the Colombia banking system in deposits and earnings. It's also a full-service institution with offices in the United States, Panama and El Salvador.

Fund of Guarantees of Financial Institutions or FOGAFIN

The Fund of Guarantees of Financial Institutions or FOGAFIN is the regulatory agency that guarantees banking deposits with the Colombian banking system. FOGAFIN performs essentially the function of the FDIC in the United States.
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Colombian peso

The Colombian peso is the national currency of Colombia. Prior to making any banking deposits, it's important to know the exchange rate of the U.S. dollar to the Colombian peso.

Central America Free Trade Agreement or CAFTA

The Central America Free Trade Agreement is legislation that facilitates trade and commerce between the member countries. Before making any business commitments in the country, it's important to review this agreement and contact the representatives of the governments involved for more information.