El Salvador - Financial sector assessment

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collection.link.72
https://openknowledge.worldbank.org/handle/10986/2180
collection.name.72
Financial Sector Assessment Program
dc.contributor.author
World Bank
dc.date.accessioned
2012-03-19T10:25:27Z
dc.date.available
2012-03-19T10:25:27Z
dc.date.issued
2010-11-01
dc.date.lastModified
2021-04-23T14:02:05Z
dc.description.abstract
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.
en
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.uri
http://hdl.handle.net/10986/2949
dc.language
English
dc.publisher
World Bank
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
AGRICULTURAL LOANS
dc.subject
ARBITRAGE
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ASSET CLASSIFICATION
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ASSET QUALITY
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ASSET RATIO
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BALANCE SHEET
dc.subject
BANK ASSETS
dc.subject
BANK CREDIT
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BANK DEPOSIT
dc.subject
BANK DEPOSITS
dc.subject
BANK LIQUIDITY
dc.subject
BANK PROFITABILITY
dc.subject
BANKING CRISIS
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BANKING LAW
dc.subject
BANKING REGULATIONS
dc.subject
BANKING SECTOR
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BASIS POINTS
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BONDS
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BROKERAGE
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BROKERAGE HOUSES
dc.subject
BROKERS
dc.subject
CAPACITY CONSTRAINTS
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CAPITAL ADEQUACY
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CAPITAL FLOWS
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CAPITAL MARKET
dc.subject
CAPITAL MARKETS
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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
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COOPERATIVE BANKS
dc.subject
CORPORATE BOND
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CORPORATE BOND ISSUERS
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CORPORATE GOVERNANCE
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CORPORATE INSOLVENCY
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CREDIT AVAILABILITY
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CREDIT BUREAUS
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CREDIT GUARANTEE
dc.subject
CREDIT INFORMATION
dc.subject
CREDIT INFORMATION SYSTEMS
dc.subject
CREDIT LINES
dc.subject
CREDIT QUALITY
dc.subject
CREDIT RATING
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CREDIT RATING AGENCIES
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CREDIT REPORTING
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CREDIT REPORTING SYSTEMS
dc.subject
CREDIT RISK
dc.subject
CREDITOR
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CREDITOR BANKS
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CURRENCY
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DEBTOR
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DEBTORS
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DEFAULTS
dc.subject
DEPOSIT INSURANCE
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DEPOSIT SERVICES
dc.subject
DEPOSITS
dc.subject
DERIVATIVES
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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
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FINANCIAL INFRASTRUCTURE
dc.subject
FINANCIAL INSTABILITY
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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
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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
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INTANGIBLE
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INTANGIBLE ASSETS
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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
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LENDING INTEREST RATES
dc.subject
LETTERS OF CREDIT
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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
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LOCAL STOCK EXCHANGE
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MACROECONOMIC STABILITY
dc.subject
MANDATORY PENSION FUNDS
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MARKET ACCESS
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MARKET CONDITIONS
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MARKET DEVELOPMENT
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MARKET DISTORTIONS
dc.subject
MARKET INSTRUMENTS
dc.subject
MARKET RISK
dc.subject
MARKET SIZE
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MARKET SURVEILLANCE
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MICROENTERPRISES
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MICROFINANCE
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MONETARY FUND
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MORTGAGE
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MORTGAGES
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MUTUAL FUND
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MUTUAL FUND INDUSTRY
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MUTUAL FUNDS
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NON-PERFORMING LOAN
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NON-PERFORMING LOANS
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NONPERFORMING LOANS
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NPL
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OPERATIONAL INDEPENDENCE
dc.subject
OUTSTANDING DEBT
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OUTSTANDING GOVERNMENT SECURITIES
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OVERHEAD COSTS
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PAYMENT SYSTEM
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PAYMENT SYSTEMS
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PENSION
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PENSION FUND
dc.subject
PENSION FUNDS
dc.subject
PENSION REFORM
dc.subject
PENSION SYSTEM
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PENSIONS
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POLITICAL UNCERTAINTY
dc.subject
PRIVATE CAPITAL
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PROVISIONING RULES
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PRUDENTIAL REGULATION
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PRUDENTIAL SUPERVISION
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PUBLIC BANKS
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PUBLIC DEBT
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PUBLIC DEBT SECURITIES
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PUBLIC FUNDS
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PUBLIC SECTOR DEBT
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REGULATORY FRAMEWORK
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REMITTANCE
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REMITTANCES
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REPOS
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RESERVE
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RESERVE FUND
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RESERVES
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RETURN
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RETURN ON ASSETS
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RETURNS
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RISK ASSESSMENTS
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RISK AVERSION
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RISK CAPITAL
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RISK MANAGEMENT
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RISK PROFILES
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SAFETY NET
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SAFETY NETS
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SECURITIES
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SECURITIES MARKETS
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SECURITY MARKETS
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SEIZURE
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SEIZURES
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SETTLEMENT
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SETTLEMENT SYSTEMS
dc.subject
SHAREHOLDERS
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SOLVENCY
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SOVEREIGN RATING
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STOCK EXCHANGE
dc.subject
STOCK MARKET
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STOCK MARKET CAPITALIZATION
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STOCKS
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SUPERVISION MECHANISMS
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SUPERVISORY AGENCY
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SUPERVISORY AUTHORITIES
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SUPERVISORY AUTHORITY
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SUPERVISORY POWERS
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TAX
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TAX COLLECTIONS
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TERRORISM
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TRADING
dc.subject
TRANCHE
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TRANSACTION
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TRANSACTION COSTS
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TREASURY
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TREATY
dc.subject
TRUST FUND
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UNDERLYING ASSET
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UNDERLYING ASSETS
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VALUATION
dc.subject
VALUATION OF PORTFOLIOS
dc.subject
VALUATIONS
dc.subject
WITHDRAWAL
dc.subject
YIELD CURVE
dc.title
El Salvador - Financial sector assessment
en
okr.date.disclosure
2010-12-02
okr.doctype
Economic & Sector Work :: Financial Sector Assessment Program (FSAP)
okr.docurl
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
okr.globalpractice
Finance and Markets
okr.globalpractice
Trade and Competitiveness
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
000333037_20101206003230
okr.identifier.internaldocumentum
13198308
okr.identifier.report
58260
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/12/06/000333037_20101206003230/Rendered/PDF/582600FSAP01pu153794B0SecM201010657.pdf
en
okr.region.administrative
Latin America & Caribbean
okr.region.country
El Salvador
okr.region.geographical
Central America
okr.region.geographical
America
okr.topic
Finance and Financial Sector Development :: Debt Markets
okr.topic
Finance and Financial Sector Development :: Banks & Banking Reform
okr.topic
Private Sector Development :: Emerging Markets
okr.topic
Finance and Financial Sector Development :: Access to Finance
okr.topic
Finance and Financial Sector Development :: Bankruptcy and Resolution of Financial Distress
okr.unit
Financial Sector Assessment Prog (FPDFP)
okr.volume
1 of 1

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