Even banks are joining the Puerto Rico exodus, and their flight could leave the island's financial system increasingly isolated.
Not only did the number of consumer banks drop by half over the past decade, but the main international players — Bank of Nova Scotia and Banco Santander SA — have been quietly shrinking, leaving the field to local institutions.
As the commonwealth tries to emerge from recession and rebuild after last year's Hurricane Maria, a handful of banks may wind up in charge of deposits and lending for its 3 million people, curbing competition that helps control interest rates. Popular Inc., First BanCorp/Puerto Rico and OFG Bancorp are cash rich and have many branches, but limited ability to facilitate trade beyond the Caribbean and Florida.
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