Nicaragua’s Banking Sector Sees Credit Growth Acceleration in 2026, Driven by Consumer and Industrial Loans

Nicaragua’s banking system accelerated credit approvals in 2026, with credit card issuance, personal loans, and industrial financing leading growth, according to data from the Superintendencia de Bancos y de Otras Instituciones Financieras (Siboif) and reports from Periódico La Prensa.

Why is credit growth accelerating in Nicaragua?

Credit card approvals surged in the first quarter of 2026, with 1.75 million cards in circulation by March, representing 79.1% of the country’s total credit. The value of credit card issuance reached 24,215 million córdobas (USD 661 million), a 21.4% annual increase, according to Siboif. Personal loans also grew by 18.7% in the first four months of 2026, though this lagged behind the 31.5% growth in 2025, La Prensa reported.

What sectors are driving the credit expansion?

The industrial credit sector saw a 16.0% growth in the first four months of 2026, with the loan portfolio rising to 38,787 million córdobas (USD 1,060 million). While the number of industrial loans decreased slightly to 2,822, the average loan size increased, indicating higher-value financing. Meanwhile, mortgage loans grew 8.8% year-over-year, reaching 24,038 million córdobas (USD 656 million) in April, according to Siboif.

How is consumer spending influencing credit trends?

The surge in credit card and personal loan approvals aligns with a 3.6% quarterly increase in national consumption, as reported by the Nicaraguan Central Bank. “Consumers are relying on credit to maintain spending amid economic uncertainty,” said an analysis from La Prensa. The 4.8% annual average consumption growth underscores the role of credit in sustaining domestic demand.

Why are agricultural loans declining?

Credit for livestock and agriculture faced challenges, with livestock loans dropping 2.2% in 2026 after a 7.1% gain in 2025. Agricultural loans contracted 5.1%, following a 6.6% increase the previous year. The decline coincided with the El Niño phenomenon, which disrupted farming activities and reduced lender confidence in the sector, according to La Prensa.

What is the overall health of Nicaragua’s credit market?

The total credit portfolio reached 243,948.7 million córdobas (USD 6,670 million) in April 2026, reflecting an 11.5% annual growth rate. While slower than the 16.0% recorded in 2025, the sector maintained stability, with 95.7% of loans current and a 1.3% non-performing loan ratio, as noted by Siboif. “The banking system prioritizes risk management despite slowing growth,” La Prensa highlighted.