Publication:
El Salvador Financial Sector Assessment Program: Safety Nets and Crisis Management Arrangements

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dc.contributor.authorInternational Monetary Fund
dc.contributor.authorWorld Bank
dc.date.accessioned2017-08-14T19:47:20Z
dc.date.available2017-08-14T19:47:20Z
dc.date.issued2010-11
dc.description.abstractIn El Salvador, the banking safety net emergency liquidity assistance, resolution and deposit insurance- faces particular challenges given it operate in the context of official dollarization. The economy was officially dollarized in 2000 with the adoption of the law on financial integration and of the United States (US) dollar as legal tender. Dollarization constrains a central bank's ability to act as a lender of last resort (LOLR) and provide emergency liquidity assistance (ELA). This note discusses the weaknesses of the current framework and recommendations to ensure the safety net functions more effectively and efficiently. To address systemic liquidity risk in the context of official dollarization, the Banco Central de Reservas (BCR) should be provided with more powers and funds to provide emergency liquidity assistance to banks. The bank resolution scheme, which has not been tested, and the deposit insurance fund, which has insufficient funds, both need to be strengthened. Appropriate roles and formal mechanisms to monitor and manage systemic risk and events should be put in place. However the roles and responsibilities of the various institutions involved in the safety net are not always consistent with their objectives, powers, and mandates, while a well-specified strategy to preserve the stability of the system (e.g., with clear responsibilities for monitoring systemic risks and taking macro prudential decisions) and definition or formal measurement of systemic risk have not yet been established. Furthermore, coordination with foreign supervisors of international banks does not include designing contingency plans to address a possible cross-border event. This paper is divided into following four parts: part one is introduction; part two gives systemic liquidity management and emergency liquidity assistance; part three is bank resolution and deposit insurance; and part four gives crisis management arrangements.en
dc.identifierhttp://documents.worldbank.org/curated/en/357511468023098128/El-Salvador-Safety-nets-and-crisis-management-arrangements-technical-note
dc.identifier.doi10.1596/27766
dc.identifier.urihttps://hdl.handle.net/10986/27766
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectACCESSIBILITY
dc.subjectACCOUNTABILITY
dc.subjectACCOUNTING
dc.subjectADEQUATE LEGAL PROTECTION
dc.subjectARBITRAGE
dc.subjectASSET STRIPPING
dc.subjectASSOCIATION OF DEPOSIT INSURERS
dc.subjectBALANCE SHEET
dc.subjectBANK DEPOSIT
dc.subjectBANK FAILURE
dc.subjectBANK HOLDINGS
dc.subjectBANK INSOLVENCY
dc.subjectBANK OFFICIALS
dc.subjectBANK RESOLUTION SCHEME
dc.subjectBANK RESTRUCTURING
dc.subjectBANKING CRISIS
dc.subjectBANKING LAW
dc.subjectBANKING SUPERVISION
dc.subjectBANKS
dc.subjectCAPITAL ADEQUACY
dc.subjectCAPITAL ADEQUACY RATIO
dc.subjectCAPITALIZATION
dc.subjectCASH RESERVES
dc.subjectCENTRAL BANK
dc.subjectCENTRAL BANKS
dc.subjectCOLLATERAL
dc.subjectCOMMERCIAL BANK
dc.subjectCOMMERCIAL BANK HOLDINGS
dc.subjectCOMMERCIAL BANKS
dc.subjectCONFLICT OF INTEREST
dc.subjectCOOPERATIVE BANK
dc.subjectCOOPERATIVE BANKS
dc.subjectCOOPERATIVES
dc.subjectCORPORATE GOVERNANCE
dc.subjectCORRECTIVE ACTION
dc.subjectCORRECTIVE ACTIONS
dc.subjectCREDIT LINES
dc.subjectCREDIT MARKET
dc.subjectCREDIT RISK
dc.subjectCREDIT RISK MANAGEMENT
dc.subjectCREDITORS
dc.subjectCROSS-BORDER BANKING
dc.subjectCURRENCY
dc.subjectCURRENCY BOARD
dc.subjectDEBTS
dc.subjectDEPOSIT
dc.subjectDEPOSIT GUARANTEE
dc.subjectDEPOSIT INSURANCE
dc.subjectDEPOSIT INSURANCE AGENCY
dc.subjectDEPOSIT INSURANCE COVERAGE
dc.subjectDEPOSIT INSURANCE FUND
dc.subjectDEPOSIT INSURANCE FUNDS
dc.subjectDEPOSIT INSURANCE PREMIUMS
dc.subjectDEPOSIT INSURANCE SCHEME
dc.subjectDEPOSIT INSURANCE SYSTEM
dc.subjectDEPOSIT INSURANCE SYSTEMS
dc.subjectDEPOSIT INSURER
dc.subjectDEPOSIT INSURERS
dc.subjectDEPOSIT WITHDRAWALS
dc.subjectDEPOSITOR
dc.subjectDEPOSITORS
dc.subjectDISSOLUTION
dc.subjectDIVIDEND
dc.subjectDIVIDENDS
dc.subjectEFFECTIVE DEPOSIT INSURANCE
dc.subjectEMERGENCY LIQUIDITY ASSISTANCE
dc.subjectEXCESS LIQUIDITY
dc.subjectEXCLUSION
dc.subjectEXTERNAL AUDITORS
dc.subjectEXTERNALITIES
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL ASSISTANCE
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DIFFICULTIES
dc.subjectFINANCIAL FLOWS
dc.subjectFINANCIAL INSTABILITY
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTEGRATION
dc.subjectFINANCIAL MANAGEMENT
dc.subjectFINANCIAL REFORM
dc.subjectFINANCIAL SAFETY
dc.subjectFINANCIAL SECTOR ASSESSMENT
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL SUPPORT
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFORBEARANCE
dc.subjectFOREIGN ASSETS
dc.subjectFOREIGN BANKS
dc.subjectFRAUD
dc.subjectFUND MANAGEMENT
dc.subjectFUNDING SOURCES
dc.subjectGOVERNMENT BONDS
dc.subjectGOVERNMENT DEPOSITS
dc.subjectGOVERNMENT SECURITIES
dc.subjectGROSS SETTLEMENT
dc.subjectHOLDING
dc.subjectHOLDING COMPANY
dc.subjectHOLDINGS
dc.subjectHOST COUNTRIES
dc.subjectHUMAN RESOURCES
dc.subjectILLIQUID BANKS
dc.subjectILLIQUIDITY
dc.subjectINDIRECT COSTS
dc.subjectINDIVIDUAL BANK
dc.subjectINDIVIDUAL BANKS
dc.subjectINFORMATION SHARING
dc.subjectINSTRUMENT
dc.subjectINSUFFICIENT FUNDS
dc.subjectINSURANCE AGENCY
dc.subjectINSURANCE PREMIUM
dc.subjectINSURED DEPOSITS
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BANKS
dc.subjectINTERNATIONAL FINANCIAL STATISTICS
dc.subjectINTERNATIONAL RESERVES
dc.subjectINTERNATIONAL STANDARDS
dc.subjectINVESTMENT POLICIES
dc.subjectINVESTMENT POLICY
dc.subjectJUDICIAL REVIEW
dc.subjectLARGE DEPOSIT
dc.subjectLEGAL ASSISTANCE
dc.subjectLEGAL FRAMEWORK
dc.subjectLEGAL INSTRUMENTS
dc.subjectLEGAL PROTECTION
dc.subjectLEGAL REQUIREMENTS
dc.subjectLEGAL TENDER
dc.subjectLEGISLATION
dc.subjectLENDER
dc.subjectLENDER OF LAST RESORT
dc.subjectLETTERS OF CREDIT
dc.subjectLEVELS OF LIQUIDITY
dc.subjectLIQUID ASSET
dc.subjectLIQUID ASSETS
dc.subjectLIQUID RESOURCES
dc.subjectLIQUIDATION
dc.subjectLIQUIDATION PROCESS
dc.subjectLIQUIDITY ASSISTANCE
dc.subjectLIQUIDITY MANAGEMENT
dc.subjectLIQUIDITY NEEDS
dc.subjectLIQUIDITY PROBLEMS
dc.subjectLIQUIDITY REQUIREMENTS
dc.subjectLIQUIDITY RISK
dc.subjectLIQUIDITY RISKS
dc.subjectLIQUIDITY SHOCK
dc.subjectLIQUIDITY SHOCKS
dc.subjectLIQUIDITY SHORTAGES
dc.subjectLOAN
dc.subjectLOCAL BANK
dc.subjectLOCAL BANKS
dc.subjectMALFEASANCE
dc.subjectMANDATE
dc.subjectMANDATES
dc.subjectMARKET MECHANISMS
dc.subjectMARKET RISK
dc.subjectMARKET TRANSACTION
dc.subjectMONETARY FUND
dc.subjectMONEY SUPPLY
dc.subjectMORAL HAZARD
dc.subjectPARENT COMPANIES
dc.subjectPAYMENT SYSTEM
dc.subjectPENALTIES
dc.subjectPENALTY
dc.subjectPENSION
dc.subjectPENSION FUNDS
dc.subjectPORTFOLIOS
dc.subjectPREPAYMENT
dc.subjectPRIVATE FINANCIAL INSTITUTIONS
dc.subjectPRIVATE FUNDS
dc.subjectPROBLEM BANK
dc.subjectPRUDENTIAL REQUIREMENTS
dc.subjectPUBLIC FUNDS
dc.subjectPUBLIC POLICY
dc.subjectRECEIVER
dc.subjectRECOVERY OF ASSETS
dc.subjectRECOVERY RATE
dc.subjectREGULATORY CONSTRAINTS
dc.subjectREGULATORY FRAMEWORK
dc.subjectREMEDY
dc.subjectREPOS
dc.subjectRESERVE
dc.subjectRESERVE ACCOUNT
dc.subjectRESERVE FUND
dc.subjectRESERVE FUNDS
dc.subjectRESERVE REQUIREMENTS
dc.subjectRESOLUTION MECHANISM
dc.subjectRESOLUTION MECHANISMS
dc.subjectRESOURCE ALLOCATION
dc.subjectRESTRUCTURING PROCESS
dc.subjectRISK CHARACTERISTICS
dc.subjectRISK MANAGEMENT
dc.subjectRISK PERCEPTION
dc.subjectSAFETY NET
dc.subjectSAFETY NETS
dc.subjectSETTLEMENT
dc.subjectSHAREHOLDERS
dc.subjectSMALL BANK
dc.subjectSMALL BANKS
dc.subjectSOLVENCY
dc.subjectSOLVENCY PROBLEMS
dc.subjectSOLVENT
dc.subjectSOLVENT BANKS
dc.subjectSOURCE OF FUNDS
dc.subjectSUBSIDIARIES
dc.subjectSUBSIDIARY
dc.subjectSUPERVISORY AGENCIES
dc.subjectSYSTEMIC CRISIS
dc.subjectSYSTEMIC RISK
dc.subjectSYSTEMIC STABILITY
dc.subjectTECHNICAL SUPPORT
dc.subjectTRANCHE
dc.subjectTRANCHES
dc.subjectTRANSACTION
dc.subjectTRANSFER OF ASSETS
dc.subjectTRANSFER OF LIABILITIES
dc.subjectTRANSPARENCY
dc.subjectTRUST FUND
dc.subjectTRUSTEE
dc.titleEl Salvador Financial Sector Assessment Programen
dc.title.subtitleSafety Nets and Crisis Management Arrangementsen
dc.typeReporten
dc.typeRapportfr
dc.typeInformees
dspace.entity.typePublication
okr.crossref.titleEl Salvador Financial Sector Assessment Program
okr.date.disclosure2013-07-08
okr.date.doiregistration2025-05-07T10:48:13.316718Z
okr.doctypeEconomic & Sector Work::Financial Sector Assessment Program
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/357511468023098128/El-Salvador-Safety-nets-and-crisis-management-arrangements-technical-note
okr.guid357511468023098128
okr.identifier.externaldocumentum000442464_20130708093302
okr.identifier.internaldocumentum17972595
okr.identifier.report79192
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/357511468023098128/pdf/791920WP0ElSal0Box0377369B00Public0.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryEl Salvador
okr.sectorFinance
okr.themeRule of law :: Legal institutions for a market economy
okr.themeFinancial and private sector development :: Regulation and competition policy
okr.themeFinancial and private sector development :: Standards and financial reporting
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicFinance and Financial Sector Development::Deposit Insurance
okr.unitFinancial Sector Assessment Prog (FFSFP)
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