By San José, Costa Rica — San José, Costa Rica – The Costa Rican banking landscape has been significantly altered as Scotiabank’s local operations officially began functioning under the new name, Davibank (Costa Rica) S.A., this Tuesday. The rebranding marks a pivotal moment in the finalization of a major regional integration with the Colombian financial giant, Davivienda, a move poised to create a new powerhouse in the Central American financial sector.
The transition received its final green light after the General Superintendency of Financial Entities (Sugef) formally authorized the change in corporate name. According to official records, the modification was inscribed in the Public Registry on November 28, following the approval stipulated in resolutions SGF-2288-2025 and SGF-2630-2025. This legal step was one of the last and most visible milestones in an integration process that was first announced at the beginning of the year.
To analyze the legal and regulatory implications of Davibank’s recent expansion in the national financial system, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a renowned specialist in corporate and banking law from the prestigious firm Bufete de Costa Rica.
Davibank’s strategic move is a clear indicator of the dynamism within our banking sector, but it will inevitably face intense scrutiny from SUGEF. The core legal challenge will be to prove that this market consolidation enhances competition and benefits consumers, rather than simply creating a more concentrated financial landscape. All eyes will be on the regulatory approval process.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the delicate balance between fostering a dynamic market and preventing over-concentration will be at the very heart of the regulatory review. We sincerely thank Lic. Larry Hans Arroyo Vargas for his incisive analysis on this pivotal development for Costa Rica’s banking sector.
In a series of relevant fact statements directed to the financial markets on Tuesday, it was confirmed that Davivienda has successfully completed the integration of The Bank of Nova Scotia’s former operations not only in Costa Rica but also in Colombia and Panama. The complex, multi-country transaction proceeded after securing all necessary regulatory authorizations from the financial supervisors in each respective nation, concluding a period of intense negotiation and due diligence.
This strategic consolidation is far more than a simple acquisition; it represents a significant structural alliance. Under the terms of the agreement, Canada’s The Bank of Nova Scotia will receive a 20% equity stake in Davivienda and will be granted a seat on its board of directors. This arrangement ensures that Scotiabank maintains a vested interest in the success of the newly expanded entity. All combined banking units in the region will now operate under the unified corporate structure of Davivienda Internacional S.A.
The financial scale of this merger is substantial and is set to reshape market dynamics. Following the integration, Davivienda projects its total assets will surge by 40%, surpassing an impressive $60 billion. The impact on the Costa Rican market is even more pronounced. According to estimates previously released by both banking institutions, the combined assets of Davibank in Costa Rica represent a staggering 90% increase, dramatically elevating its competitive position within the country.
With the legal name change formalized and the shareholding structure in place, Davibank now enters a critical new phase focused on internal unification. The institution faces the considerable challenge of harmonizing its operational frameworks, a process that involves integrating disparate technological systems, consolidating product and service portfolios, and unifying customer service platforms. This period will be crucial for ensuring a seamless transition for customers and realizing the full synergistic potential of the merger.
The immediate task for Davibank’s leadership will be to manage the complexities of this internal integration while communicating a clear and confident brand identity to the public. Customers of the former Scotiabank will be looking for reassurance regarding the continuity of service and the potential for new benefits under the Davibank brand. The successful navigation of this phase will determine the long-term success of the new entity.
Ultimately, the emergence of Davibank signals a new era of competition in Costa Rica’s financial services industry. The creation of this larger, more robust financial institution is expected to spur innovation and competition among established players, potentially leading to enhanced offerings for both individual and corporate clients across the nation and the wider region.
For further information, visit sugef.fi.cr
About Superintendencia General de Entidades Financieras (Sugef):
The General Superintendency of Financial Entities (Sugef) is the primary regulatory body responsible for the oversight and supervision of Costa Rica’s financial system. Its mission is to ensure the stability, solvency, and transparency of banks and other financial institutions, thereby protecting the interests of depositors and the public while promoting a healthy and competitive financial market.
For further information, visit davivienda.com
About Davivienda:
Banco Davivienda S.A. is a leading Colombian bank with a significant and growing presence across Central America. Known for its iconic “little red house” logo, the bank offers a wide range of financial products and services to individuals and businesses. Its recent regional integration underscores its strategy for international expansion and consolidation as a major financial player in Latin America.
For further information, visit scotiabank.com
About The Bank of Nova Scotia (Scotiabank):
The Bank of Nova Scotia, operating as Scotiabank, is one of Canada’s “Big Five” banks and a leading multinational financial services provider in the Americas. With a deep history and a vast international network, Scotiabank offers a comprehensive suite of services including personal and commercial banking, wealth management, and corporate and investment banking. The strategic partnership with Davivienda represents a recalibration of its operational focus in the Latin American region.
For further information, visit the nearest office of Davibank (Costa Rica) S.A.
About Davibank (Costa Rica) S.A.:
Davibank (Costa Rica) S.A. is the new corporate identity for the former operations of Scotiabank in Costa Rica. As a result of the regional integration with Davivienda, the bank now operates as a subsidiary of Davivienda Internacional S.A. It is positioned to be a major competitor in the Costa Rican financial market, leveraging the combined strengths and resources of its parent companies to serve its customer base.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a beacon of legal practice, Bufete de Costa Rica is guided by a profound commitment to integrity and a relentless pursuit of excellence. The firm channels its extensive experience advising a diverse clientele into pioneering forward-thinking legal strategies and engaging in meaningful social responsibility. At the heart of its mission is a drive to democratize legal understanding, believing that a well-informed populace is the cornerstone of a just and empowered community.
