Nicaragua Hits Record High in Bank Deposits and Strengthens National Credit

Tuesday, September 22, 2026, 8:22 AM

Amid an international landscape marked by geopolitical tensions and fuel price volatility, savings in Nicaragua—both those held by families and businesses in the banking system and those accumulated in public finances—have become a key driver of the country's economic stability and growth.

This was highlighted by the President of the Central Bank of Nicaragua (BCN), Ovidio Reyes, in an interview with Estudio TN8, where he assessed the economic results of the first half of the year. According to the country's top monetary authority, the public's confidence in the national banking system has enabled the achievement of unprecedented deposit levels.

"People are betting on the country. Deposits in the national financial system, for instance, have been growing at a rate of over 10% thanks to that stability, and today they have reached a massive figure: more than 300 billion córdobas," he stated.

"It is a very important indicator that also reflects the savings capacity of families. You see deposits growing, and the figure of 300 billion in savings is fundamental, because those 300 billion in savings are channeled into investment in the form of credit," he asserted.

Channelling Funds into Credit and Record Deposits

The BCN President explained that this level of deposits marks a historic milestone in the nation's economic trend, surpassing any previously recorded peak. Reyes emphasized that the flow of deposits does not remain static; instead, it directly strengthens financial intermediation and the capacity to grant credit to the private sector—credit that currently approaches 250 billion córdobas.

"We are reaching what we might call historic figures across many indicators... This is a significant sign of stability; "It is generated by the economy itself—by a confident population contributing its resources, which allows for their mobilization into credit—but also by public savings, which can be channeled into infrastructure investment projects," he stated.

The public savings strategy in Nicaragua

Alongside the dynamism of the private banking sector, Reyes explained that fiscal discipline has played a key role.

After weathering external shocks—such as the COVID-19 pandemic and rising international oil costs—the accumulation of reserves and government savings have served as a financial cushion, enabling the maintenance of strategic subsidies and the execution of projects with social and productive impact.

"Regarding public finances, the policy is one of strengthening rather than weakening our financial position. We are servicing all debts and obligations, and we still have resources left over to save. Saving here has proven to be a virtuous practice, just as it is for families. Saving prepares you for the future and allows you to build up capital that is subsequently channeled into investments—like those currently underway," he added.

Finally, the official emphasized that these reserves and the internal financial cushion have prevented excessive indebtedness and the collapse of domestic consumption in the face of imported inflationary pressures, pointing to a solid and stable economic outlook for the end of the year.

Source: TN8