Research and Markets: Colombia Commercial Banking Report Q3 2010

DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/ec65cc/colombia_commercia) has announced the addition of the "Colombia Commercial Banking Report Q3 2010" report to their offering.

Business Monitor International's Colombia Commercial Banking Report provides industry professionals and strategists, corporate analysts, banking associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Colombia's commercial banking industry.

Since Q108, we have described numerically the banking business environment for each of the countries surveyed by BMI. We do this through our Commercial Banking Business Environment Rating (CBBER), a measure that ensures we capture the latest quantitative information available. It also ensures consistency across all countries and between the inputs to the CBBER and the Insurance Business Environment Rating, which is likewise now a feature of our insurance reports. Like the Business Environment Ratings calculated by BMI for all the other industries on which it reports, the CBBER takes into account the limits of potential returns and the risks to the realisation of those returns. It is weighted 70% to the former and 30% to the latter.

The evaluation of the Limits of Potential Returns includes market elements that are specific to the banking industry of the country in question and elements that relate to that country in general. Within the 70% of the CBBER that takes into account the Limits of Potential Returns, the market elements have a 60% weighting and the country elements have a 40% weighting. The evaluation of the Risks to the Realisation of Returns also includes banking elements and country elements (specifically, BMIs assessment of long-term country risk). However, within the 30% of the CBBER that take into account the risks, these elements are weighted 40% and 60%, respectively.

Further details on how we calculate the CBBER are provided at the end of this report. In general, though, three aspects need to be borne in mind in interpreting the CBBERs. The first is that the market elements of the Limits of Potential Returns are by far the most heavily weighted of the four elements. They account for 60% of 70% (or 42%) of the overall CBBER. Second, if the market elements are significantly higher than the country elements of the Limits of Potential Returns, it usually implies that the banking sector is (very) large and/or developed relative to the general wealth, stability and financial infrastructure in the country. Conversely, if the market elements are significantly lower than the country elements, it usually means that the banking sector is small and/or underdeveloped relative to the general wealth, stability and financial infrastructure in the country. Third, within the Risks to the Realisation of Returns category, the market elements (ie: how regulations affect the development of the sector, how regulations affect competition within it, and Moody's Investors Services ratings for local currency deposits) can be markedly different from BMIs long-term risk rating.

Key Topics Covered:

• Executive Summary
• SWOT Analysis
• Business Environment Outlook
• Global Commercial Banking Outlook
• Colombia Banking Sector Outlook
• List of Banks
• Banking Sector Methodology

Companies Mentioned:

• Bancolombia
• BBVA Colombia
• Banco Santander Colombia
• Grupo Aval
• Banco Davivienda

For more information visit http://www.researchandmarkets.com/research/ec65cc/colombia_commercia.