One of the things we are learning about the current financial crisis is that banks operate best when they really operate as banks.
When it was launched a year ago, Banco Buenaventura looked like a great idea for serving the Hispanic community. And we gave the brains behind the institution the benefit of the doubt for building their business plan around services and money transfers — two non-traditional paths to profit for a financial institution.
But the world now wants a bank that makes money the old-fashioned way — lending it out to business borrowers at a premium and taking in deposits that are cheap and insured. Banco BuenaVentura never quite fit that mold.