The second investment grade obtained by Paraguay is not an "automatic passport to prosperity," warned the banking sector during the opening of the 2nd Banking Convention, held on Thursday at the Sheraton Asunción Hotel. The president of the Paraguayan Banking Association (Asoban), Osvaldo Serafini, highlighted that the rating reflects the macroeconomic solidity built over decades, but stressed that the international market rewards not promises but sustained predictability.
"This achievement is a door of opportunities, which opens or closes according to the coherence of our future actions," said Serafini, before more than 400 participants, including the Minister of Economy, Óscar Lovera, and the president of the Central Bank of Paraguay (BCP), Carlos Carvallo. He emphasized that macroeconomic stability requires not only solid indicators but also strong institutions and clear rules, capable of resisting political pressures and populist solutions.
The Paraguayan banking sector, with deposits exceeding ₲190 trillion (about $31 billion) and a robust credit portfolio, operates with solvency levels of 12.5% and sufficient liquidity to absorb external shocks. However, Serafini warned that celebrating agreements to pay off short-term debts with state suppliers cannot mask structural problems, such as the fiscal surplus and the sustainability of pension systems. "The banking sector cannot limit itself to applauding palliatives. It is imperative to confront these challenges, whose roots go beyond the current situation," he said.
During the event, international experts reinforced the critical points of the local financial system. Henrique Sznirer, associate director of S&P Global Ratings, pointed out that, despite historical profitability and stability, banking regulation still falls short of international standards, although it is gradually advancing. "There are efforts to extend supervision to payment entities and improve money laundering prevention standards, but the transition to Basel III is still underway," he noted.
Sznirer also highlighted the system's exposure to agribusiness and commodities, despite a downward trend, and the need to deepen the capital market for local private issuances. Liz Cramer, executive president of Asoban, argued that regulation should evolve in tune with the market, under two principles: regulatory symmetry and participatory construction of rules. "The money managed by banks belongs mainly to savers, and its safeguarding is the basis of economic stability," she stated.
Federico Muxi, senior partner at Boston Consulting Group (BCG), warned of the accelerated transformation of the financial ecosystem over the next five years, with a growing gap between leaders and laggards. "Competitiveness must be rethought: there is greater fluidity of customers among players, and digital payments are a key battle," he said. He also highlighted that fintechs, although representing only 4% of the financial system, are growing four times faster than traditional banks, with potential to gain ground.
The debates also addressed the need to preserve the technical independence of the BCP. Serafini reinforced that the institution's credibility is an asset that must be protected, although he advocated for greater dialogue with the sector before adopting regulatory measures. "Regulation built with dialogue strengthens the system; one imposed without consultation reduces its adaptability," he concluded.