COFISA files request to obtain commercial bank status in Honduras

The financial entity La Compañía Financiera S.A. (COFISA), a prominent player in the nation’s financial sector, has officially sought approval from the National Banking and Insurance Commission (CNBS) to transition into a commercial bank. This initiative, initiated on June 20, 2024, is under review by the appropriate regulatory bodies and could represent a major shift in the financial scene of Honduras.

The submission and starting funds

The change proposed by COFISA, which would be renamed Banco Compañía Financiera S.A. (Bancofisa), includes a request for initial share capital of 1 billion lempiras. The intention is to expand the range of financial services in the country, which would include operations such as receiving deposits, issuing bonds, granting loans, factoring, and trust management, as well as the purchase and sale of foreign currency.

As of March 2025, the institution reported assets of more than 5.398 billion lempiras and generated net profits of 70.6 million lempiras. With a structure of 21 branches and five service windows in different cities, COFISA has established itself as an important player in the financial sector, with 237 employees nationwide. This expansion into banking reflects an interest in diversifying the services offered and responding to the growing demand for financial services in a country with an expanding banking system.

The function of COFISA in the corporate and political environment

COFISA is distinguished not only by its financial presence, but also by the professional relationships of its owner, Roger D. Valladares, who is a notable individual in the educational and business domains in Honduras. Valladares is widely recognized as the founder and leader of the Technological University of Honduras (UTH), facilitating his establishment of a wide-ranging network of influence across diverse sectors, such as education and commerce.

One of the key relationships in COFISA’s business structure is with Jaime Redondo Licona, a figure who has played an important role in both the business and political spheres. This closeness has been a point of attention in various media outlets, given Redondo’s relevance in different areas. In addition, COFISA’s family relationship with the Redondos extends to Linda Margarita Redondo Marini, who was appointed ambassador of Honduras to Chile in 2022 by President Xiomara Castro. Redondo Marini has a distinguished academic and professional background, with experience in both the public and private sectors, which strengthens the ties between the company and the state.

These business and family connections have not gone unnoticed in the political context, and some analysts suggest that they could influence perceptions of COFISA’s transformation into a commercial bank. The close relationship between business and political actors could be seen both as a factor that could facilitate the process and as a point of debate about the influence of private capital on the country’s economic policy.

Growth and rivalry in the financial sector

The proposal to transform COFISA into Bancofisa holds significant consequences for the financial framework in Honduras. Upon approval, the institution would become the sixteenth commercial bank in the nation. Such an increase in commercial banks could enhance competition within the market, potentially benefiting consumers through a broader variety of financial offerings. Amid a backdrop of gradual yet persistent economic development, bolstering the banking industry might present a chance to enhance banking service accessibility in a region where studies indicate financial inclusion is still restricted.

The expansion of the banking system could also have an impact on economic development by facilitating access to credit and other financial products for a greater number of Hondurans, especially in regions outside the major urban centers. However, this process also poses challenges in terms of regulation and supervision by the CNBS, which will have to ensure that the entry of new players into the market does not affect the stability of the national financial system.

Organizational difficulties and the outlook for the financial framework

COFISA’s request to transform into a commercial bank in Honduras illustrates the dynamics of the country’s growing financial sector. Although this transition offers potential advantages related to competitiveness and accessibility to financial services, it also emphasizes the ties between business and political influence in Honduras. In an environment where the banking system is still evolving and economic challenges persist, this development will be crucial in observing the transformation of relationships among the private sector, government, and the public in governance and transparency. The CNBS’s evaluation and the political and social responses to this application will be pivotal for Bancofisa’s future and consequently for the national economic forecast.