Publication: El Salvador Financial Sector Assessment Program Update: Basel Core Principles for Effective Banking Supervision
Date
2010-11
ISSN
Published
2010-11
Author(s)
International Monetary Fund
World Bank
Abstract
This assessment of the Basel Core
Principles (BCP) was conducted as part of the financial
sector assessment program (FSAP) update evaluation of the El
Salvador financial system from April 22 to May 10, 2010. The
supervisory framework was assessed against the BCP
methodology issued in October 2006. The assessment of
compliance with each principle is made on a qualitative
basis. A four-part assessment system is used: compliant;
largely compliant; materially noncompliant; and
noncompliant. A largely compliant assessment is given if
only minor shortcomings are observed, and these are not seen
as sufficient to raise serious doubts about the
authority's ability to achieve the objective of that
principle. A materially noncompliant assessment is given
when the shortcomings are sufficient to raise doubts about
the authority's ability to achieve compliance, but
substantive progress has been made. A noncompliant
assessment is given when no substantive progress toward
compliance has been achieved. The ratings assigned during
this assessment are not comparable to the ones assigned in
the 2000 FSAP, as the bar to measure the effectiveness of a
supervisory framework has been raised in the new
methodology. This paper is structures as follows:
introduction; information and methodology used for
assessment; institutional and macroeconomic setting and
market structure- overview; preconditions for effective bank
supervision; main findings; and recommended action plan and
authorities' response.
Citation
“International Monetary Fund; World Bank. 2010. El Salvador Financial Sector Assessment Program Update : Basel Core Principles for Effective Banking Supervision. © Washington, DC. http://openknowledge.worldbank.org/handle/10986/27734 License: CC BY 3.0 IGO.”