Its main investments are in the domestic banking sector but it has taken two big stakes overseas.

Its domestic banking business had net income of $293 million in the second quarter, up from $264 million in the same 2003 quarter.

But more casualties among the cajas look possible and together they represent around half the country's domestic banking industry.

In the meantime, with odds against another recession shortening, the domestic banking sector faces a hit to profits.

In a country with strict foreign exchange regulations, the demand for foreign currency will be satisfied in the holding of foreign currency assets abroad and outside the domestic banking system.