El Salvador Financial Sector Assessment Program Update

The global financial crisis and ensuing credit crunch has revived the discussion on the role of public sector in the financial system around the world and in El Salvador, authorities have announced plans to step up their activities. A clearly defined strategy for the public banks, focused on complementing private sector activity, is necessary as their activities expand to improve access to finance and diversify the sources of funding. Any process of growth needs to accompany by improvement in risk management processes, governance arrangements and enhanced supervision. Going forward, the two public retail banks should increase their specialization in different market segments. The development bank role can be enhanced while maintaining its second tier status. To make the guarantee funds effective, in addition to scale their size, several operational features need to be improved.

Bibliographic Details

Main Authors:	International Monetary Fund, World Bank
Format:	Report biblioteca
Language:	English en_US
Published:	Washington, DC 2010-11
Subjects:	ACCESS TO CAPITAL, ACCESS TO CREDIT, ACCESS TO FINANCE, ACCOUNTABILITY, ACCOUNTING, ACCOUNTING TREATMENT, ADMINISTRATIVE COSTS, AGRICULTURAL PRODUCTS, AGRICULTURAL SECTOR, ASSET QUALITY, ASYMMETRIC INFORMATION, AUDITING, BALANCE SHEET, BANK CREDIT, BANK FINANCING, BANK LOAN, BANKING SECTOR, BANKING SERVICES, BANKING SYSTEM, BANKRUPTCY, BANKS, BLUE CHIP, BORROWER, BRANCH NETWORK, BUSINESS PLAN, BUSINESS PLANS, BUSINESS STRATEGIES, CAPITAL ADEQUACY, CAPITAL FINANCE, CAPITAL MARKET, CAPITAL MARKETS, CAPITALIZATION, CENTRAL BANKS, COLLATERAL, COLLATERAL REQUIREMENTS, COLLECTION PROCESSES, COMMERCIAL BANK, COMMERCIAL PAPER, CONSOLIDATION, CONVERTIBLE DEBENTURES, COOPERATIVE BANKS, COOPERATIVES, CORPORATE GOVERNANCE, CORRUPTION, CREDIBILITY, CREDIT ANALYSIS, CREDIT CONSTRAINED FIRMS, CREDIT CRUNCH, CREDIT ENHANCEMENTS, CREDIT GUARANTEE, CREDIT GUARANTEES, CREDIT HISTORY, CREDIT INSTITUTIONS, CREDIT LIMITS, CREDIT LINES, CREDIT ORIGINATION, CREDIT PORTFOLIO, CREDIT PROCESS, CREDIT PROCESSES, CREDIT PROVISION, CREDIT RISK, CREDIT RISKS, CREDITORS, CREDITS, DEBT, DEBT FINANCING, DEPOSIT, DEPOSITS, DERIVATIVES, DEVELOPMENT BANK, DEVELOPMENT BANKS, DIRECT CREDIT, DIRECT FINANCING, DISBURSEMENTS, DIVERSIFICATION, EARNING ASSETS, ECONOMIC GROWTH, ECONOMIES OF SCALE, ELIGIBILITY CRITERIA, EMERGING ECONOMIES, EMPLOYEE, EMPLOYMENT, EQUIPMENT, EQUITY FUNDS, EQUITY INVESTMENTS, EXTERNALITIES, FACTORING, FARMERS, FEDERAL RESERVE, FINANCES, FINANCIAL AUTHORITIES, FINANCIAL CRISIS, FINANCIAL DEVELOPMENT, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL LIABILITIES, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL PERFORMANCE, FINANCIAL PLAYERS, FINANCIAL PRODUCTS, FINANCIAL SECTOR ASSESSMENT, FINANCIAL SERVICES, FINANCIAL STABILITY, FINANCIAL SUSTAINABILITY, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FISCAL LOSSES, FOREIGN BANKS, FOREIGN EXCHANGE, FUNDING SOURCE, GOVERNANCE STANDARDS, GROSS DOMESTIC PRODUCT, GUARANTEE FUND, GUARANTEE FUNDS, GUARANTEE SCHEMES, GUARANTIES, GUARANTOR, HOUSING, INSTITUTIONAL CAPACITY, INSURANCE, INSURED DEPOSITS, INTEREST EXPENSE, INTEREST INCOME, INTEREST RATE, INTEREST RATE CEILINGS, INTEREST RATES, INTERMEDIARY BANKS, INTERNATIONAL BANK, INTERNATIONAL BANKS, INTERNATIONAL MARKETS, INVESTMENT BANK, INVESTMENT PROJECTS, ISSUANCES, LEGAL CONSTRAINTS, LEGAL PROVISIONS, LENDER, LENDER OF LAST RESORT, LENDERS, LENDING PORTFOLIO, LEVY, LINE OF CREDITS, LINES OF CREDIT, LIQUID ASSETS, LIQUIDATIONS, LIQUIDITY, LOAN, LOAN APPLICATIONS, LOAN DEFAULTS, LOAN PORTFOLIO, LOAN SIZE, LONG TERM FINANCING, LONG-TERM CAPITAL, LONG-TERM FINANCE, LONG-TERM FUNDING, LOW INTEREST RATES, MANDATES, MARKET DEVELOPMENT, MARKET DISCIPLINE, MARKET FAILURE, MARKET FAILURES, MARKET INTEREST RATE, MARKET INTEREST RATES, MATURITIES, MICROCREDIT, MICROFINANCE, MONETARY FUND, MONETARY POLICY, MORTGAGE, MUTUAL FUNDS, NATIONAL CREDIT, NATIONAL TREASURY, NET INTEREST MARGIN, NON-PERFORMING LOAN, NON-PERFORMING LOANS, NPL, OPERATING COSTS, OPERATING EXPENSES, OUTSTANDING LOAN, PARTIAL CREDIT, PENSION, PENSION FUND, PENSION FUNDS, PLEDGE COLLATERAL, PRIVATE BANKS, PRIVATE COMMERCIAL BANKS, PRIVATE CREDITORS, PRIVATE EQUITY, PRIVATE FINANCIAL SECTOR, PRIVATE INVESTMENT, PRIVATIZATIONS, PROFITABILITY, PRUDENTIAL REGULATION, PUBLIC BANK, PUBLIC BANKS, RECESSION, RESERVE ACCOUNTS, RESERVE REQUIREMENTS, RETAIL BANKS, RETURN, RETURN ON ASSETS, RETURN ON EQUITY, RETURNS, RISK AVERSION, RISK MANAGEMENT, RISK WEIGHTED ASSETS, SECURITIES, SECURITIES ISSUANCE, SMALL BANK, SMALL LOANS, SOCIAL CAPITAL, SOCIAL DEVELOPMENT, SOLVENCY, STATE INTERVENTION, STATE OWNED BANKS, STUDENT LOANS, SUBSIDIARIES, SUBSIDIARY, TECHNICAL ASSISTANCE, TELECOMMUNICATIONS, TIER 1 CAPITAL, TRANSACTION COST, TRANSACTION COSTS, TREASURY, TRUST FUNDS, UNEMPLOYMENT,
Online Access:	http://documents.worldbank.org/curated/en/919061468037136569/El-Salvador-Public-Banks-technical-note https://hdl.handle.net/10986/27737
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