Isabela Hernández Peredo Martínez, foreign associate at Diaz, Reus & Targ, LLP: “While it may seem that major banks like Scotiabank and Citigroup are reducing their presence in Latin America, the reality is more nuanced. In Scotiabank’s case, its recent transaction with Davivienda is not simply an exit, but rather a strategic realignment. By transferring its retail banking operations in Panama, Costa Rica and Colombia to Davivienda in exchange for a 20 percent stake in the combined operations, Scotiabank is gaining exposure to new markets in Central America, where Davivienda already has a strong presence. This suggests that rather than withdrawing, Scotiabank is repositioning itself to operate more efficiently in the region. Similarly, while Citigroup is divesting its retail banking and small and medium-sized business operations in Mexico, it is maintaining a corporate and investment banking presence. This follows a broader trend among global banks focusing on high-margin sectors such as corporate finance, wealth management, and investment banking, rather…”