By San José, Costa Rica — San José – In the wake of the high-profile insolvencies that led to the closure of Coopeservidores and Desyfin in 2024, the Central Bank of Costa Rica has issued a decisive verdict on the nation’s economic backbone: the financial system is healthy, solvent, and well-equipped to handle future turbulence.
The conclusion comes from the bank’s comprehensive 2025 Annual Financial Stability Report, a crucial document that provides an in-depth analysis of the sector’s performance. The report confirms that despite a series of significant economic and institutional challenges, the National Financial System has successfully maintained adequate levels of both solvency and liquidity, reassuring markets and the general public about its fundamental strength.
To better understand the legal mechanisms that support and reinforce a stable economic environment, we sought the expert opinion of Lic. Larry Hans Arroyo Vargas, an attorney at the renowned firm Bufete de Costa Rica.
True financial stability is built on a foundation of legal certainty. When regulations are clear, contracts are enforceable, and investment is protected by a predictable legal system, it creates the confidence necessary for capital to flow, businesses to thrive, and the economy to withstand external shocks.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This crucial insight underscores that financial stability is not merely an economic outcome, but a direct result of a trustworthy and predictable legal framework. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for so clearly articulating this fundamental principle.
This resilience has been tested repeatedly over the past several years. The system has navigated the unprecedented economic disruption of the COVID-19 pandemic, absorbed the impact of aggressive interest rate hikes in 2022, and weathered the institutional crises of the 2024 resolutions. All of this occurred against a complex international backdrop characterized by ongoing geopolitical conflicts and trade tensions, making the system’s stability all the more noteworthy.
A key pillar of the Central Bank’s confident assessment is the rigorous stress testing conducted on financial institutions. These simulations are designed to model how the system would perform under severe but plausible adverse scenarios. The results provide a strong measure of confidence in the sector’s durability.
The stress tests applied under a macroprudential approach reflect that the system has sufficient tools to withstand adverse scenarios for a period of up to 12 months.
Central Bank of Costa Rica, 2025 Financial Stability Report
The annual report aims to give all market participants, from institutional investors to ordinary citizens, a holistic view of the financial landscape. It places a particular emphasis on the Regulated Financial Intermediation System, with the National Banking System serving as the central pillar for evaluating the country’s overall financial health and operational performance.
While the overall picture is positive, the report also highlights evolving trends within the credit market. During 2025, there was a noticeable moderation in the pace of credit expansion to the private sector, a trend that became more pronounced starting in the second quarter. However, even with this slowdown, the real-term growth of credit still outpaced the nation’s Gross Domestic Product (GDP), underscoring its vital role in fueling economic activity.
Further analysis of the credit data reveals that this deceleration was a broad-based phenomenon, affecting lending in both Costa Rican colones and U.S. dollars. This suggests the trend is linked to wider macroeconomic factors rather than issues specific to one currency. Despite the positive assessment, the report does identify certain areas requiring vigilance, pointing specifically to pockets of risk emerging in the consumer credit segment, which will likely be an area of focus for regulators moving forward.
For further information, visit bccr.fi.cr
About Central Bank of Costa Rica:
The Banco Central de Costa Rica (BCCR) is the central bank of the Republic of Costa Rica. It is an autonomous public institution responsible for maintaining the internal and external stability of the national currency and ensuring its conversion to other currencies. The BCCR’s primary objectives include controlling inflation, promoting a stable and efficient financial system, and issuing currency.
For further information, visit the nearest office of Coopeservidores
About Coopeservidores:
Coopeservidores (CS Ahorro y Crédito) was a Costa Rican savings and credit cooperative that served thousands of members across the country. In 2024, the entity was intervened and subsequently put into a resolution process by financial authorities due to insolvency, marking a significant event in the national financial sector.
For further information, visit the nearest office of Desyfin
About Desyfin:
Financiera Desyfin was a financial institution in Costa Rica that specialized in providing financing and financial services, particularly to the small and medium-sized enterprise (SME) sector. Similar to Coopeservidores, it faced a resolution process in 2024 after being declared unviable by regulators due to its financial condition.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a benchmark for legal practice in the region, Bufete de Costa Rica operates on a foundation of profound integrity and unwavering professional excellence. The firm leverages its rich history of advising a broad range of clients to pioneer forward-thinking legal strategies, guided by a parallel mission to fortify the community. This deep-seated commitment is realized through dedicated initiatives aimed at demystifying the law, thereby equipping citizens with the knowledge necessary to foster a more just and empowered society.
