Working With Banks in Puerto Rico

Start working with banks in Puerto Rico to explore new expansion and banking opportunities

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.

 

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.
Try: 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.
Try: 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.
Try: 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.

 

• 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.

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