El Salvador - Financial sector assessment
Despite the global and domestic shocks of 2008-2009, the banking sector remains sound. Salvadoran banks were not directly exposed to the global financial crisis. However, the parent banks of several major Salvadoran banks were and directed subsidia...
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| Format: | Financial Sector Assessment Program (FSAP) |
| Language: | English |
| Published: |
World Bank
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20101206003230 http://hdl.handle.net/10986/2949 |
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okr-10986-2949 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGRICULTURAL LOANS ARBITRAGE ASSET CLASSIFICATION ASSET QUALITY ASSET RATIO BALANCE SHEET BANK ASSETS BANK CREDIT BANK DEPOSIT BANK DEPOSITS BANK LIQUIDITY BANK PROFITABILITY BANKING CRISIS BANKING LAW BANKING REGULATIONS BANKING SECTOR BASIS POINTS BONDS BROKERAGE BROKERAGE HOUSES BROKERS CAPACITY CONSTRAINTS CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CAPITAL MARKETS DEVELOPMENT CAPITALIZATION CENTRAL BANK CENTRAL BANKS COLLATERAL COLLATERAL POLICY COLLECTIVE INVESTMENT COMMERCIAL BANKS COMPULSORY INVESTMENT CONSUMER CREDIT CONSUMER PROTECTION CONTINGENT LIABILITY COOPERATIVE BANKS CORPORATE BOND CORPORATE BOND ISSUERS CORPORATE GOVERNANCE CORPORATE INSOLVENCY CREDIT AVAILABILITY CREDIT BUREAUS CREDIT GUARANTEE CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT LINES CREDIT QUALITY CREDIT RATING CREDIT RATING AGENCIES CREDIT REPORTING CREDIT REPORTING SYSTEMS CREDIT RISK CREDITOR CREDITOR BANKS CURRENCY DEBTOR DEBTORS DEFAULTS DEPOSIT INSURANCE DEPOSIT SERVICES DEPOSITS DERIVATIVES DEVELOPMENT BANK DOMESTIC LIQUIDITY DOMESTIC SECURITIES DOMESTIC STOCK EXCHANGE ECONOMIC POLICIES EUROBOND EXTERNAL BORROWING FACE VALUE FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INFRASTRUCTURE FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL DEFICIT FIXED INCOME FIXED INCOME SECURITIES FOREIGN INSTRUMENTS FUND MANAGEMENT FUND MANAGERS GOVERNANCE STANDARDS GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROSS SETTLEMENT SYSTEM GUARANTEE FUND INFORMATION TECHNOLOGY INSTITUTIONAL INVESTORS INSURANCE COMPANIES INSURANCE INDUSTRY INSURANCE PENETRATION INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTEREST RATE RISK INTERNATIONAL MARKETS INTERNATIONAL STANDARDS INVESTING INVESTMENT FUNDS INVESTMENT OPPORTUNITIES INVESTMENT POLICIES ISSUANCE LEGAL FRAMEWORK LEGAL PROTECTION LEGAL PROVISIONS LEGAL REFORM LENDING INTEREST RATES LETTERS OF CREDIT LIQUID ASSET LIQUID ASSETS LIQUIDITY LIQUIDITY RISK LIQUIDITY RISKS LOAN PORTFOLIO LOANS FROM BANKS LOCAL STOCK EXCHANGE MACROECONOMIC STABILITY MANDATORY PENSION FUNDS MARKET ACCESS MARKET CONDITIONS MARKET DEVELOPMENT MARKET DISTORTIONS MARKET INSTRUMENTS MARKET RISK MARKET SIZE MARKET SURVEILLANCE MICROENTERPRISES MICROFINANCE MONETARY FUND MORTGAGE MORTGAGES MUTUAL FUND MUTUAL FUND INDUSTRY MUTUAL FUNDS NON-PERFORMING LOAN NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATIONAL INDEPENDENCE OUTSTANDING DEBT OUTSTANDING GOVERNMENT SECURITIES OVERHEAD COSTS PAYMENT SYSTEM PAYMENT SYSTEMS PENSION PENSION FUND PENSION FUNDS PENSION REFORM PENSION SYSTEM PENSIONS POLITICAL UNCERTAINTY PRIVATE CAPITAL PROVISIONING RULES PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION PUBLIC BANKS PUBLIC DEBT PUBLIC DEBT SECURITIES PUBLIC FUNDS PUBLIC SECTOR DEBT REGULATORY FRAMEWORK REMITTANCE REMITTANCES REPOS RESERVE RESERVE FUND RESERVES RETURN RETURN ON ASSETS RETURNS RISK ASSESSMENTS RISK AVERSION RISK CAPITAL RISK MANAGEMENT RISK PROFILES SAFETY NET SAFETY NETS SECURITIES SECURITIES MARKETS SECURITY MARKETS SEIZURE SEIZURES SETTLEMENT SETTLEMENT SYSTEMS SHAREHOLDERS SOLVENCY SOVEREIGN RATING STOCK EXCHANGE STOCK MARKET STOCK MARKET CAPITALIZATION STOCKS SUPERVISION MECHANISMS SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POWERS TAX TAX COLLECTIONS TERRORISM TRADING TRANCHE TRANSACTION TRANSACTION COSTS TREASURY TREATY TRUST FUND UNDERLYING ASSET UNDERLYING ASSETS VALUATION VALUATION OF PORTFOLIOS VALUATIONS WITHDRAWAL YIELD CURVE |
| spellingShingle |
AGRICULTURAL LOANS ARBITRAGE ASSET CLASSIFICATION ASSET QUALITY ASSET RATIO BALANCE SHEET BANK ASSETS BANK CREDIT BANK DEPOSIT BANK DEPOSITS BANK LIQUIDITY BANK PROFITABILITY BANKING CRISIS BANKING LAW BANKING REGULATIONS BANKING SECTOR BASIS POINTS BONDS BROKERAGE BROKERAGE HOUSES BROKERS CAPACITY CONSTRAINTS CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CAPITAL MARKETS DEVELOPMENT CAPITALIZATION CENTRAL BANK CENTRAL BANKS COLLATERAL COLLATERAL POLICY COLLECTIVE INVESTMENT COMMERCIAL BANKS COMPULSORY INVESTMENT CONSUMER CREDIT CONSUMER PROTECTION CONTINGENT LIABILITY COOPERATIVE BANKS CORPORATE BOND CORPORATE BOND ISSUERS CORPORATE GOVERNANCE CORPORATE INSOLVENCY CREDIT AVAILABILITY CREDIT BUREAUS CREDIT GUARANTEE CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT LINES CREDIT QUALITY CREDIT RATING CREDIT RATING AGENCIES CREDIT REPORTING CREDIT REPORTING SYSTEMS CREDIT RISK CREDITOR CREDITOR BANKS CURRENCY DEBTOR DEBTORS DEFAULTS DEPOSIT INSURANCE DEPOSIT SERVICES DEPOSITS DERIVATIVES DEVELOPMENT BANK DOMESTIC LIQUIDITY DOMESTIC SECURITIES DOMESTIC STOCK EXCHANGE ECONOMIC POLICIES EUROBOND EXTERNAL BORROWING FACE VALUE FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INFRASTRUCTURE FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL DEFICIT FIXED INCOME FIXED INCOME SECURITIES FOREIGN INSTRUMENTS FUND MANAGEMENT FUND MANAGERS GOVERNANCE STANDARDS GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROSS SETTLEMENT SYSTEM GUARANTEE FUND INFORMATION TECHNOLOGY INSTITUTIONAL INVESTORS INSURANCE COMPANIES INSURANCE INDUSTRY INSURANCE PENETRATION INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTEREST RATE RISK INTERNATIONAL MARKETS INTERNATIONAL STANDARDS INVESTING INVESTMENT FUNDS INVESTMENT OPPORTUNITIES INVESTMENT POLICIES ISSUANCE LEGAL FRAMEWORK LEGAL PROTECTION LEGAL PROVISIONS LEGAL REFORM LENDING INTEREST RATES LETTERS OF CREDIT LIQUID ASSET LIQUID ASSETS LIQUIDITY LIQUIDITY RISK LIQUIDITY RISKS LOAN PORTFOLIO LOANS FROM BANKS LOCAL STOCK EXCHANGE MACROECONOMIC STABILITY MANDATORY PENSION FUNDS MARKET ACCESS MARKET CONDITIONS MARKET DEVELOPMENT MARKET DISTORTIONS MARKET INSTRUMENTS MARKET RISK MARKET SIZE MARKET SURVEILLANCE MICROENTERPRISES MICROFINANCE MONETARY FUND MORTGAGE MORTGAGES MUTUAL FUND MUTUAL FUND INDUSTRY MUTUAL FUNDS NON-PERFORMING LOAN NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATIONAL INDEPENDENCE OUTSTANDING DEBT OUTSTANDING GOVERNMENT SECURITIES OVERHEAD COSTS PAYMENT SYSTEM PAYMENT SYSTEMS PENSION PENSION FUND PENSION FUNDS PENSION REFORM PENSION SYSTEM PENSIONS POLITICAL UNCERTAINTY PRIVATE CAPITAL PROVISIONING RULES PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION PUBLIC BANKS PUBLIC DEBT PUBLIC DEBT SECURITIES PUBLIC FUNDS PUBLIC SECTOR DEBT REGULATORY FRAMEWORK REMITTANCE REMITTANCES REPOS RESERVE RESERVE FUND RESERVES RETURN RETURN ON ASSETS RETURNS RISK ASSESSMENTS RISK AVERSION RISK CAPITAL RISK MANAGEMENT RISK PROFILES SAFETY NET SAFETY NETS SECURITIES SECURITIES MARKETS SECURITY MARKETS SEIZURE SEIZURES SETTLEMENT SETTLEMENT SYSTEMS SHAREHOLDERS SOLVENCY SOVEREIGN RATING STOCK EXCHANGE STOCK MARKET STOCK MARKET CAPITALIZATION STOCKS SUPERVISION MECHANISMS SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POWERS TAX TAX COLLECTIONS TERRORISM TRADING TRANCHE TRANSACTION TRANSACTION COSTS TREASURY TREATY TRUST FUND UNDERLYING ASSET UNDERLYING ASSETS VALUATION VALUATION OF PORTFOLIOS VALUATIONS WITHDRAWAL YIELD CURVE World Bank El Salvador - Financial sector assessment |
| geographic_facet |
Latin America & Caribbean Central America America El Salvador |
| description |
Despite the global and domestic shocks
of 2008-2009, the banking sector remains sound. Salvadoran
banks were not directly exposed to the global financial
crisis. However, the parent banks of several major
Salvadoran banks were and directed subsidiaries to conserve
risk capital. The higher risk aversion and recession in the
United States, combined with uncertainty about the 2009
elections, led to a sharp economic downturn, and a decline
in both credit demand and supply. Banks' nonperforming
loans increased and profitability declined. Even so,
capitalization remained high. Stress tests indicate that
most banks would be able to withstand large deposit
withdraws and severe deterioration in credit quality arising
from large macroeconomic or sectoral shocks. However, credit
concentration risks appear significant. Regulated non-bank
financial institutions do not pose significant risks, but
pension funds' poor profitability is a concern for the
long-term. Regulated cooperative banks and insurance
companies report healthy financial indicators. Brokerage
houses have reduced drastically their fund management
activities, which until recently posed systemic risks due to
inadequate regulations and unsound commercial practices.
Pension funds have grown considerably and now amount to 25
percent of total financial sector assets. However,
investments are mostly in low-yielding public sector
securities. To ensure a sound financial footing for the
pension system, an in-depth actuarial analysis should
evaluate pension reform costs and calculate replacement
rates. The type of investments available to pension funds
should be expanded progressively to increase
diversification, improve returns and foster capital markets. |
| format |
Economic & Sector Work :: Financial Sector Assessment Program (FSAP) |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
El Salvador - Financial sector assessment |
| title_short |
El Salvador - Financial sector assessment |
| title_full |
El Salvador - Financial sector assessment |
| title_fullStr |
El Salvador - Financial sector assessment |
| title_full_unstemmed |
El Salvador - Financial sector assessment |
| title_sort |
el salvador - financial sector assessment |
| publisher |
World Bank |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20101206003230 http://hdl.handle.net/10986/2949 |
| _version_ |
1764386224911417344 |
| spelling |
okr-10986-29492021-04-23T14:02:05Z El Salvador - Financial sector assessment World Bank AGRICULTURAL LOANS ARBITRAGE ASSET CLASSIFICATION ASSET QUALITY ASSET RATIO BALANCE SHEET BANK ASSETS BANK CREDIT BANK DEPOSIT BANK DEPOSITS BANK LIQUIDITY BANK PROFITABILITY BANKING CRISIS BANKING LAW BANKING REGULATIONS BANKING SECTOR BASIS POINTS BONDS BROKERAGE BROKERAGE HOUSES BROKERS CAPACITY CONSTRAINTS CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CAPITAL MARKETS DEVELOPMENT CAPITALIZATION CENTRAL BANK CENTRAL BANKS COLLATERAL COLLATERAL POLICY COLLECTIVE INVESTMENT COMMERCIAL BANKS COMPULSORY INVESTMENT CONSUMER CREDIT CONSUMER PROTECTION CONTINGENT LIABILITY COOPERATIVE BANKS CORPORATE BOND CORPORATE BOND ISSUERS CORPORATE GOVERNANCE CORPORATE INSOLVENCY CREDIT AVAILABILITY CREDIT BUREAUS CREDIT GUARANTEE CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT LINES CREDIT QUALITY CREDIT RATING CREDIT RATING AGENCIES CREDIT REPORTING CREDIT REPORTING SYSTEMS CREDIT RISK CREDITOR CREDITOR BANKS CURRENCY DEBTOR DEBTORS DEFAULTS DEPOSIT INSURANCE DEPOSIT SERVICES DEPOSITS DERIVATIVES DEVELOPMENT BANK DOMESTIC LIQUIDITY DOMESTIC SECURITIES DOMESTIC STOCK EXCHANGE ECONOMIC POLICIES EUROBOND EXTERNAL BORROWING FACE VALUE FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INFRASTRUCTURE FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL DEFICIT FIXED INCOME FIXED INCOME SECURITIES FOREIGN INSTRUMENTS FUND MANAGEMENT FUND MANAGERS GOVERNANCE STANDARDS GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROSS SETTLEMENT SYSTEM GUARANTEE FUND INFORMATION TECHNOLOGY INSTITUTIONAL INVESTORS INSURANCE COMPANIES INSURANCE INDUSTRY INSURANCE PENETRATION INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTEREST RATE RISK INTERNATIONAL MARKETS INTERNATIONAL STANDARDS INVESTING INVESTMENT FUNDS INVESTMENT OPPORTUNITIES INVESTMENT POLICIES ISSUANCE LEGAL FRAMEWORK LEGAL PROTECTION LEGAL PROVISIONS LEGAL REFORM LENDING INTEREST RATES LETTERS OF CREDIT LIQUID ASSET LIQUID ASSETS LIQUIDITY LIQUIDITY RISK LIQUIDITY RISKS LOAN PORTFOLIO LOANS FROM BANKS LOCAL STOCK EXCHANGE MACROECONOMIC STABILITY MANDATORY PENSION FUNDS MARKET ACCESS MARKET CONDITIONS MARKET DEVELOPMENT MARKET DISTORTIONS MARKET INSTRUMENTS MARKET RISK MARKET SIZE MARKET SURVEILLANCE MICROENTERPRISES MICROFINANCE MONETARY FUND MORTGAGE MORTGAGES MUTUAL FUND MUTUAL FUND INDUSTRY MUTUAL FUNDS NON-PERFORMING LOAN NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATIONAL INDEPENDENCE OUTSTANDING DEBT OUTSTANDING GOVERNMENT SECURITIES OVERHEAD COSTS PAYMENT SYSTEM PAYMENT SYSTEMS PENSION PENSION FUND PENSION FUNDS PENSION REFORM PENSION SYSTEM PENSIONS POLITICAL UNCERTAINTY PRIVATE CAPITAL PROVISIONING RULES PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION PUBLIC BANKS PUBLIC DEBT PUBLIC DEBT SECURITIES PUBLIC FUNDS PUBLIC SECTOR DEBT REGULATORY FRAMEWORK REMITTANCE REMITTANCES REPOS RESERVE RESERVE FUND RESERVES RETURN RETURN ON ASSETS RETURNS RISK ASSESSMENTS RISK AVERSION RISK CAPITAL RISK MANAGEMENT RISK PROFILES SAFETY NET SAFETY NETS SECURITIES SECURITIES MARKETS SECURITY MARKETS SEIZURE SEIZURES SETTLEMENT SETTLEMENT SYSTEMS SHAREHOLDERS SOLVENCY SOVEREIGN RATING STOCK EXCHANGE STOCK MARKET STOCK MARKET CAPITALIZATION STOCKS SUPERVISION MECHANISMS SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POWERS TAX TAX COLLECTIONS TERRORISM TRADING TRANCHE TRANSACTION TRANSACTION COSTS TREASURY TREATY TRUST FUND UNDERLYING ASSET UNDERLYING ASSETS VALUATION VALUATION OF PORTFOLIOS VALUATIONS WITHDRAWAL YIELD CURVE Despite the global and domestic shocks of 2008-2009, the banking sector remains sound. Salvadoran banks were not directly exposed to the global financial crisis. However, the parent banks of several major Salvadoran banks were and directed subsidiaries to conserve risk capital. The higher risk aversion and recession in the United States, combined with uncertainty about the 2009 elections, led to a sharp economic downturn, and a decline in both credit demand and supply. Banks' nonperforming loans increased and profitability declined. Even so, capitalization remained high. Stress tests indicate that most banks would be able to withstand large deposit withdraws and severe deterioration in credit quality arising from large macroeconomic or sectoral shocks. However, credit concentration risks appear significant. Regulated non-bank financial institutions do not pose significant risks, but pension funds' poor profitability is a concern for the long-term. Regulated cooperative banks and insurance companies report healthy financial indicators. Brokerage houses have reduced drastically their fund management activities, which until recently posed systemic risks due to inadequate regulations and unsound commercial practices. Pension funds have grown considerably and now amount to 25 percent of total financial sector assets. However, investments are mostly in low-yielding public sector securities. To ensure a sound financial footing for the pension system, an in-depth actuarial analysis should evaluate pension reform costs and calculate replacement rates. The type of investments available to pension funds should be expanded progressively to increase diversification, improve returns and foster capital markets. 2012-03-19T10:25:27Z 2012-03-19T10:25:27Z 2010-11-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20101206003230 http://hdl.handle.net/10986/2949 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank Economic & Sector Work :: Financial Sector Assessment Program (FSAP) Latin America & Caribbean Central America America El Salvador |