Publication:
El Salvador - Financial sector assessment

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dc.contributor.authorWorld Bank
dc.date.accessioned2012-03-19T10:25:27Z
dc.date.available2012-03-19T10:25:27Z
dc.date.issued2010-11-01
dc.description.abstractDespite 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.en
dc.identifierhttp://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.doi10.1596/2949
dc.identifier.urihttps://hdl.handle.net/10986/2949
dc.languageEnglish
dc.publisherWorld Bank
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGRICULTURAL LOANS
dc.subjectARBITRAGE
dc.subjectASSET CLASSIFICATION
dc.subjectASSET QUALITY
dc.subjectASSET RATIO
dc.subjectBALANCE SHEET
dc.subjectBANK ASSETS
dc.subjectBANK CREDIT
dc.subjectBANK DEPOSIT
dc.subjectBANK DEPOSITS
dc.subjectBANK LIQUIDITY
dc.subjectBANK PROFITABILITY
dc.subjectBANKING CRISIS
dc.subjectBANKING LAW
dc.subjectBANKING REGULATIONS
dc.subjectBANKING SECTOR
dc.subjectBASIS POINTS
dc.subjectBONDS
dc.subjectBROKERAGE
dc.subjectBROKERAGE HOUSES
dc.subjectBROKERS
dc.subjectCAPACITY CONSTRAINTS
dc.subjectCAPITAL ADEQUACY
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL MARKETS DEVELOPMENT
dc.subjectCAPITALIZATION
dc.subjectCENTRAL BANK
dc.subjectCENTRAL BANKS
dc.subjectCOLLATERAL
dc.subjectCOLLATERAL POLICY
dc.subjectCOLLECTIVE INVESTMENT
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMPULSORY INVESTMENT
dc.subjectCONSUMER CREDIT
dc.subjectCONSUMER PROTECTION
dc.subjectCONTINGENT LIABILITY
dc.subjectCOOPERATIVE BANKS
dc.subjectCORPORATE BOND
dc.subjectCORPORATE BOND ISSUERS
dc.subjectCORPORATE GOVERNANCE
dc.subjectCORPORATE INSOLVENCY
dc.subjectCREDIT AVAILABILITY
dc.subjectCREDIT BUREAUS
dc.subjectCREDIT GUARANTEE
dc.subjectCREDIT INFORMATION
dc.subjectCREDIT INFORMATION SYSTEMS
dc.subjectCREDIT LINES
dc.subjectCREDIT QUALITY
dc.subjectCREDIT RATING
dc.subjectCREDIT RATING AGENCIES
dc.subjectCREDIT REPORTING
dc.subjectCREDIT REPORTING SYSTEMS
dc.subjectCREDIT RISK
dc.subjectCREDITOR
dc.subjectCREDITOR BANKS
dc.subjectCURRENCY
dc.subjectDEBTOR
dc.subjectDEBTORS
dc.subjectDEFAULTS
dc.subjectDEPOSIT INSURANCE
dc.subjectDEPOSIT SERVICES
dc.subjectDEPOSITS
dc.subjectDERIVATIVES
dc.subjectDEVELOPMENT BANK
dc.subjectDOMESTIC LIQUIDITY
dc.subjectDOMESTIC SECURITIES
dc.subjectDOMESTIC STOCK EXCHANGE
dc.subjectECONOMIC POLICIES
dc.subjectEUROBOND
dc.subjectEXTERNAL BORROWING
dc.subjectFACE VALUE
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL INFORMATION
dc.subjectFINANCIAL INFRASTRUCTURE
dc.subjectFINANCIAL INSTABILITY
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL SECTOR DEVELOPMENT
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL SYSTEM
dc.subjectFISCAL DEFICIT
dc.subjectFIXED INCOME
dc.subjectFIXED INCOME SECURITIES
dc.subjectFOREIGN INSTRUMENTS
dc.subjectFUND MANAGEMENT
dc.subjectFUND MANAGERS
dc.subjectGOVERNANCE STANDARDS
dc.subjectGOVERNMENT SECURITIES
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROSS SETTLEMENT SYSTEM
dc.subjectGUARANTEE FUND
dc.subjectINFORMATION TECHNOLOGY
dc.subjectINSTITUTIONAL INVESTORS
dc.subjectINSURANCE COMPANIES
dc.subjectINSURANCE INDUSTRY
dc.subjectINSURANCE PENETRATION
dc.subjectINTANGIBLE
dc.subjectINTANGIBLE ASSETS
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE RISK
dc.subjectINTERNATIONAL MARKETS
dc.subjectINTERNATIONAL STANDARDS
dc.subjectINVESTING
dc.subjectINVESTMENT FUNDS
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTMENT POLICIES
dc.subjectISSUANCE
dc.subjectLEGAL FRAMEWORK
dc.subjectLEGAL PROTECTION
dc.subjectLEGAL PROVISIONS
dc.subjectLEGAL REFORM
dc.subjectLENDING INTEREST RATES
dc.subjectLETTERS OF CREDIT
dc.subjectLIQUID ASSET
dc.subjectLIQUID ASSETS
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY RISK
dc.subjectLIQUIDITY RISKS
dc.subjectLOAN PORTFOLIO
dc.subjectLOANS FROM BANKS
dc.subjectLOCAL STOCK EXCHANGE
dc.subjectMACROECONOMIC STABILITY
dc.subjectMANDATORY PENSION FUNDS
dc.subjectMARKET ACCESS
dc.subjectMARKET CONDITIONS
dc.subjectMARKET DEVELOPMENT
dc.subjectMARKET DISTORTIONS
dc.subjectMARKET INSTRUMENTS
dc.subjectMARKET RISK
dc.subjectMARKET SIZE
dc.subjectMARKET SURVEILLANCE
dc.subjectMICROENTERPRISES
dc.subjectMICROFINANCE
dc.subjectMONETARY FUND
dc.subjectMORTGAGE
dc.subjectMORTGAGES
dc.subjectMUTUAL FUND
dc.subjectMUTUAL FUND INDUSTRY
dc.subjectMUTUAL FUNDS
dc.subjectNON-PERFORMING LOAN
dc.subjectNON-PERFORMING LOANS
dc.subjectNONPERFORMING LOANS
dc.subjectNPL
dc.subjectOPERATIONAL INDEPENDENCE
dc.subjectOUTSTANDING DEBT
dc.subjectOUTSTANDING GOVERNMENT SECURITIES
dc.subjectOVERHEAD COSTS
dc.subjectPAYMENT SYSTEM
dc.subjectPAYMENT SYSTEMS
dc.subjectPENSION
dc.subjectPENSION FUND
dc.subjectPENSION FUNDS
dc.subjectPENSION REFORM
dc.subjectPENSION SYSTEM
dc.subjectPENSIONS
dc.subjectPOLITICAL UNCERTAINTY
dc.subjectPRIVATE CAPITAL
dc.subjectPROVISIONING RULES
dc.subjectPRUDENTIAL REGULATION
dc.subjectPRUDENTIAL SUPERVISION
dc.subjectPUBLIC BANKS
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC DEBT SECURITIES
dc.subjectPUBLIC FUNDS
dc.subjectPUBLIC SECTOR DEBT
dc.subjectREGULATORY FRAMEWORK
dc.subjectREMITTANCE
dc.subjectREMITTANCES
dc.subjectREPOS
dc.subjectRESERVE
dc.subjectRESERVE FUND
dc.subjectRESERVES
dc.subjectRETURN
dc.subjectRETURN ON ASSETS
dc.subjectRETURNS
dc.subjectRISK ASSESSMENTS
dc.subjectRISK AVERSION
dc.subjectRISK CAPITAL
dc.subjectRISK MANAGEMENT
dc.subjectRISK PROFILES
dc.subjectSAFETY NET
dc.subjectSAFETY NETS
dc.subjectSECURITIES
dc.subjectSECURITIES MARKETS
dc.subjectSECURITY MARKETS
dc.subjectSEIZURE
dc.subjectSEIZURES
dc.subjectSETTLEMENT
dc.subjectSETTLEMENT SYSTEMS
dc.subjectSHAREHOLDERS
dc.subjectSOLVENCY
dc.subjectSOVEREIGN RATING
dc.subjectSTOCK EXCHANGE
dc.subjectSTOCK MARKET
dc.subjectSTOCK MARKET CAPITALIZATION
dc.subjectSTOCKS
dc.subjectSUPERVISION MECHANISMS
dc.subjectSUPERVISORY AGENCY
dc.subjectSUPERVISORY AUTHORITIES
dc.subjectSUPERVISORY AUTHORITY
dc.subjectSUPERVISORY POWERS
dc.subjectTAX
dc.subjectTAX COLLECTIONS
dc.subjectTERRORISM
dc.subjectTRADING
dc.subjectTRANCHE
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectTREASURY
dc.subjectTREATY
dc.subjectTRUST FUND
dc.subjectUNDERLYING ASSET
dc.subjectUNDERLYING ASSETS
dc.subjectVALUATION
dc.subjectVALUATION OF PORTFOLIOS
dc.subjectVALUATIONS
dc.subjectWITHDRAWAL
dc.subjectYIELD CURVE
dc.titleEl Salvador - Financial sector assessmenten
dspace.entity.typePublication
okr.date.disclosure2010-12-02
okr.date.doiregistration2025-05-07T08:45:42.438162Z
okr.doctypeEconomic & Sector Work::Financial Sector Assessment Program (FSAP)
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20101206003230
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid597481468248071096
okr.identifier.externaldocumentum000333037_20101206003230
okr.identifier.internaldocumentum13198308
okr.identifier.report58260
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/12/06/000333037_20101206003230/Rendered/PDF/582600FSAP01pu153794B0SecM201010657.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryEl Salvador
okr.region.geographicalCentral America
okr.region.geographicalAmerica
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.unitFinancial Sector Assessment Prog (FPDFP)
okr.volume1 of 1
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