The Central Bank of Nicaragua has published its April Financial Stability Report, which assesses the national financial system as stable and says some vulnerabilities have eased since the previous report in October 2025. The report links that assessment to continued economic growth, low unemployment, stable formal employment and expectations of low domestic inflation under balanced monetary and fiscal policy. It also warns that global financial stability risks persist, including geopolitical conflicts, inflation pressures, tighter financial conditions and vulnerabilities in non-bank financial institutions. Financial intermediation remained dynamic, with credit expanding alongside higher public deposits, while asset quality, profitability, liquidity and solvency stayed at adequate levels and above regulatory thresholds. Financial markets were described as stable, with higher foreign exchange transactions, a low and stable selling exchange rate gap, higher securities trading volumes, double-digit growth in the consolidated loan portfolio of banks, finance companies and microfinance institutions, recovery in mortgage lending and continued support for insurance activity from stronger economic and credit activity. The report also says asset prices show no major imbalances, the Central Bank of Nicaragua cut its monetary reference rate by 25 basis points in January 2026 to 5.75 percent, and public securities yields and bank and finance company interest rates have remained relatively stable. Banks and finance companies continued to hold liquidity buffers above regulatory requirements, and public deposits accounted for 86.3 percent of total liabilities. Liability and deposit dollarization kept declining after the Central Bank of Nicaragua's local-currency payment measures, although foreign-currency exposure remained high, with 64.1 percent of public deposits denominated in foreign currency at March 2026. The report adds that household and corporate indebtedness remained on a moderating growth path at the end of 2025, public debt fell for a fourth consecutive year to 48.1 percent of GDP from 51.7 percent in 2024, and stress scenarios indicate the economy and financial system remain resilient to the main identified risk of weaker global growth affecting Nicaragua's trading partners.
Central Bank of Nicaragua 2026-04-29
Central Bank of Nicaragua publishes April Financial Stability Report showing stable conditions and reduced vulnerabilities
The Central Bank of Nicaragua’s April Financial Stability Report deems the financial system stable, citing continued economic growth, low unemployment, stable formal employment and expectations of low inflation under balanced monetary and fiscal policy, while noting global risks from geopolitical tensions, inflation pressures, tighter financial conditions and non-bank vulnerabilities. Credit growth, higher public deposits and adequate asset quality, profitability, liquidity and solvency support this, alongside stable markets, declining dollarization, moderating private indebtedness and a fourth annual fall in public debt to 48.1 percent of GDP. Stress tests show resilience to a potential slowdown in global growth.