Steady credit growth with stable and manageable asset quality, despite the low-income economy; and Large deposit base that supports the banking system's funding structure. Tight interest margins and modest profitability due to a low retail customer base stemming from low GDP per capita, high poverty level, and households' very low debt capacity; Very weak institutions and rule of law, coupled with persistently high level of crime and perception of corruption; and The banking regulatory framework lags behind international standards. Our economic risk trend for banks operating in Honduras is stable. We expect the banking system to maintain a steady credit growth with stable asset quality metrics during the next 12-24 months. We believe banks' credit expansion will be supported mainly
