El Salvador - Financial sector assessment

World Bank

dc.creator	World Bank
dc.date	2012-03-19T10:25:27Z
dc.date	2012-03-19T10:25:27Z
dc.date	2010-11-01
dc.date.accessioned	2023-02-17T20:44:31Z
dc.date.available	2023-02-17T20:44:31Z
dc.identifier	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
dc.identifier	http://hdl.handle.net/10986/2949
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/243303
dc.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.
dc.language	English
dc.publisher	World Bank
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	AGRICULTURAL LOANS
dc.subject	ARBITRAGE
dc.subject	ASSET CLASSIFICATION
dc.subject	ASSET QUALITY
dc.subject	ASSET RATIO
dc.subject	BALANCE SHEET
dc.subject	BANK ASSETS
dc.subject	BANK CREDIT
dc.subject	BANK DEPOSIT
dc.subject	BANK DEPOSITS
dc.subject	BANK LIQUIDITY
dc.subject	BANK PROFITABILITY
dc.subject	BANKING CRISIS
dc.subject	BANKING LAW
dc.subject	BANKING REGULATIONS
dc.subject	BANKING SECTOR
dc.subject	BASIS POINTS
dc.subject	BONDS
dc.subject	BROKERAGE
dc.subject	BROKERAGE HOUSES
dc.subject	BROKERS
dc.subject	CAPACITY CONSTRAINTS
dc.subject	CAPITAL ADEQUACY
dc.subject	CAPITAL FLOWS
dc.subject	CAPITAL MARKET
dc.subject	CAPITAL MARKETS
dc.subject	CAPITAL MARKETS DEVELOPMENT
dc.subject	CAPITALIZATION
dc.subject	CENTRAL BANK
dc.subject	CENTRAL BANKS
dc.subject	COLLATERAL
dc.subject	COLLATERAL POLICY
dc.subject	COLLECTIVE INVESTMENT
dc.subject	COMMERCIAL BANKS
dc.subject	COMPULSORY INVESTMENT
dc.subject	CONSUMER CREDIT
dc.subject	CONSUMER PROTECTION
dc.subject	CONTINGENT LIABILITY
dc.subject	COOPERATIVE BANKS
dc.subject	CORPORATE BOND
dc.subject	CORPORATE BOND ISSUERS
dc.subject	CORPORATE GOVERNANCE
dc.subject	CORPORATE INSOLVENCY
dc.subject	CREDIT AVAILABILITY
dc.subject	CREDIT BUREAUS
dc.subject	CREDIT GUARANTEE
dc.subject	CREDIT INFORMATION
dc.subject	CREDIT INFORMATION SYSTEMS
dc.subject	CREDIT LINES
dc.subject	CREDIT QUALITY
dc.subject	CREDIT RATING
dc.subject	CREDIT RATING AGENCIES
dc.subject	CREDIT REPORTING
dc.subject	CREDIT REPORTING SYSTEMS
dc.subject	CREDIT RISK
dc.subject	CREDITOR
dc.subject	CREDITOR BANKS
dc.subject	CURRENCY
dc.subject	DEBTOR
dc.subject	DEBTORS
dc.subject	DEFAULTS
dc.subject	DEPOSIT INSURANCE
dc.subject	DEPOSIT SERVICES
dc.subject	DEPOSITS
dc.subject	DERIVATIVES
dc.subject	DEVELOPMENT BANK
dc.subject	DOMESTIC LIQUIDITY
dc.subject	DOMESTIC SECURITIES
dc.subject	DOMESTIC STOCK EXCHANGE
dc.subject	ECONOMIC POLICIES
dc.subject	EUROBOND
dc.subject	EXTERNAL BORROWING
dc.subject	FACE VALUE
dc.subject	FINANCIAL ASSETS
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL INFORMATION
dc.subject	FINANCIAL INFRASTRUCTURE
dc.subject	FINANCIAL INSTABILITY
dc.subject	FINANCIAL INSTITUTION
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL SECTOR DEVELOPMENT
dc.subject	FINANCIAL STABILITY
dc.subject	FINANCIAL SYSTEM
dc.subject	FISCAL DEFICIT
dc.subject	FIXED INCOME
dc.subject	FIXED INCOME SECURITIES
dc.subject	FOREIGN INSTRUMENTS
dc.subject	FUND MANAGEMENT
dc.subject	FUND MANAGERS
dc.subject	GOVERNANCE STANDARDS
dc.subject	GOVERNMENT SECURITIES
dc.subject	GROSS DOMESTIC PRODUCT
dc.subject	GROSS SETTLEMENT SYSTEM
dc.subject	GUARANTEE FUND
dc.subject	INFORMATION TECHNOLOGY
dc.subject	INSTITUTIONAL INVESTORS
dc.subject	INSURANCE COMPANIES
dc.subject	INSURANCE INDUSTRY
dc.subject	INSURANCE PENETRATION
dc.subject	INTANGIBLE
dc.subject	INTANGIBLE ASSETS
dc.subject	INTEREST RATE
dc.subject	INTEREST RATE RISK
dc.subject	INTERNATIONAL MARKETS
dc.subject	INTERNATIONAL STANDARDS
dc.subject	INVESTING
dc.subject	INVESTMENT FUNDS
dc.subject	INVESTMENT OPPORTUNITIES
dc.subject	INVESTMENT POLICIES
dc.subject	ISSUANCE
dc.subject	LEGAL FRAMEWORK
dc.subject	LEGAL PROTECTION
dc.subject	LEGAL PROVISIONS
dc.subject	LEGAL REFORM
dc.subject	LENDING INTEREST RATES
dc.subject	LETTERS OF CREDIT
dc.subject	LIQUID ASSET
dc.subject	LIQUID ASSETS
dc.subject	LIQUIDITY
dc.subject	LIQUIDITY RISK
dc.subject	LIQUIDITY RISKS
dc.subject	LOAN PORTFOLIO
dc.subject	LOANS FROM BANKS
dc.subject	LOCAL STOCK EXCHANGE
dc.subject	MACROECONOMIC STABILITY
dc.subject	MANDATORY PENSION FUNDS
dc.subject	MARKET ACCESS
dc.subject	MARKET CONDITIONS
dc.subject	MARKET DEVELOPMENT
dc.subject	MARKET DISTORTIONS
dc.subject	MARKET INSTRUMENTS
dc.subject	MARKET RISK
dc.subject	MARKET SIZE
dc.subject	MARKET SURVEILLANCE
dc.subject	MICROENTERPRISES
dc.subject	MICROFINANCE
dc.subject	MONETARY FUND
dc.subject	MORTGAGE
dc.subject	MORTGAGES
dc.subject	MUTUAL FUND
dc.subject	MUTUAL FUND INDUSTRY
dc.subject	MUTUAL FUNDS
dc.subject	NON-PERFORMING LOAN
dc.subject	NON-PERFORMING LOANS
dc.subject	NONPERFORMING LOANS
dc.subject	NPL
dc.subject	OPERATIONAL INDEPENDENCE
dc.subject	OUTSTANDING DEBT
dc.subject	OUTSTANDING GOVERNMENT SECURITIES
dc.subject	OVERHEAD COSTS
dc.subject	PAYMENT SYSTEM
dc.subject	PAYMENT SYSTEMS
dc.subject	PENSION
dc.subject	PENSION FUND
dc.subject	PENSION FUNDS
dc.subject	PENSION REFORM
dc.subject	PENSION SYSTEM
dc.subject	PENSIONS
dc.subject	POLITICAL UNCERTAINTY
dc.subject	PRIVATE CAPITAL
dc.subject	PROVISIONING RULES
dc.subject	PRUDENTIAL REGULATION
dc.subject	PRUDENTIAL SUPERVISION
dc.subject	PUBLIC BANKS
dc.subject	PUBLIC DEBT
dc.subject	PUBLIC DEBT SECURITIES
dc.subject	PUBLIC FUNDS
dc.subject	PUBLIC SECTOR DEBT
dc.subject	REGULATORY FRAMEWORK
dc.subject	REMITTANCE
dc.subject	REMITTANCES
dc.subject	REPOS
dc.subject	RESERVE
dc.subject	RESERVE FUND
dc.subject	RESERVES
dc.subject	RETURN
dc.subject	RETURN ON ASSETS
dc.subject	RETURNS
dc.subject	RISK ASSESSMENTS
dc.subject	RISK AVERSION
dc.subject	RISK CAPITAL
dc.subject	RISK MANAGEMENT
dc.subject	RISK PROFILES
dc.subject	SAFETY NET
dc.subject	SAFETY NETS
dc.subject	SECURITIES
dc.subject	SECURITIES MARKETS
dc.subject	SECURITY MARKETS
dc.subject	SEIZURE
dc.subject	SEIZURES
dc.subject	SETTLEMENT
dc.subject	SETTLEMENT SYSTEMS
dc.subject	SHAREHOLDERS
dc.subject	SOLVENCY
dc.subject	SOVEREIGN RATING
dc.subject	STOCK EXCHANGE
dc.subject	STOCK MARKET
dc.subject	STOCK MARKET CAPITALIZATION
dc.subject	STOCKS
dc.subject	SUPERVISION MECHANISMS
dc.subject	SUPERVISORY AGENCY
dc.subject	SUPERVISORY AUTHORITIES
dc.subject	SUPERVISORY AUTHORITY
dc.subject	SUPERVISORY POWERS
dc.subject	TAX
dc.subject	TAX COLLECTIONS
dc.subject	TERRORISM
dc.subject	TRADING
dc.subject	TRANCHE
dc.subject	TRANSACTION
dc.subject	TRANSACTION COSTS
dc.subject	TREASURY
dc.subject	TREATY
dc.subject	TRUST FUND
dc.subject	UNDERLYING ASSET
dc.subject	UNDERLYING ASSETS
dc.subject	VALUATION
dc.subject	VALUATION OF PORTFOLIOS
dc.subject	VALUATIONS
dc.subject	WITHDRAWAL
dc.subject	YIELD CURVE
dc.title	El Salvador - Financial sector assessment
dc.type	Economic & Sector Work :: Financial Sector Assessment Program (FSAP)
dc.coverage	Latin America & Caribbean
dc.coverage	Central America
dc.coverage	America
dc.coverage	El Salvador