El Salvador Financial Sector Assessment Program Update : Public Banks
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 defin...
Main Authors: | , |
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Format: | Report |
Language: | English en_US |
Published: |
Washington, DC
2017
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/919061468037136569/El-Salvador-Public-Banks-technical-note http://hdl.handle.net/10986/27737 |
Summary: | 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. |
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