World BankInternational Monetary Fund2017-08-142017-08-142010-11https://hdl.handle.net/10986/27768Financial service provision has expanded since the 2004 financial sector assessment program (FSAP) update, but access to financial services can expand greatly through mobile banking. An estimated 47 percent of adults in El Salvador have deposit accounts at a regulated financial institution, similar to the Latin American average. Although a range of range of bank and non-bank institutions serve the micro and Small and Medium Enterprises (SME) finance market, significant financial services provision is occurring outside of the regulatory perimeter. Improvements in credit information systems, simplification of credit documentation processes, and a strengthened legal framework for factoring can help facilitate SMEs access to credit. Issues of financial transparency and consumer protection are of increasing importance to the Salvadoran authorities, although resources for enforcement are limited. Both public and private entities are engaging in educational activities to promote financial literacy have the potential to play an important role in curbing over indebtedness. However, the consumer defense agency (Defensoria al Consumidor) lacks sufficient resources for enforcement of consumer protection laws. This paper is divided into following six parts: first part gives overview of financial access and usage patterns; the second part gives information on funding and savings products commercialized; the third part gives market participants; fourth part is legal and regulatory impediments to credit; fifth part deals with supervisory and regulatory perimeter issues; and sixth part is transparency, consumer protection, and financial literacy.en-USCC BY 3.0 IGOACCESS POINTSACCESS TO CREDITACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO FINANCINGACCOUNTINGANTI-MONEY LAUNDERINGAPPROVAL PROCESSARBITRAGEARBITRATIONATMATMSAUDITINGAUTOMATIC TELLERBANK CREDITBANK FINANCE COMPANIESBANK FINANCINGBANKING SYSTEMBIASESBORROWERCAPITAL ADEQUACYCAPITAL ADEQUACY RATIOSCAPITAL MARKETSCAPITAL REQUIREMENTCENTRAL BANKCOLLATERALCOLLATERAL REQUIREMENTSCOLLATERALIZATIONCOMMERCIAL BANKCOMMERCIAL BANKSCOMMERCIAL CREDITCOMMERCIAL TRANSACTIONCONSULTATION PROCESSCONSUMER CREDITCONSUMER CREDITSCONSUMER LENDINGCONSUMER LOANCONSUMER LOANSCONSUMER MARKETCONSUMER PROTECTIONCONSUMER PROTECTION LAWCONSUMER PROTECTION LAWSCONSUMERSCONTRACT ENFORCEMENTCOOPERATIVE BANKSCOOPERATIVESCREDIT BUREAUCREDIT BUREAUSCREDIT CARDCREDIT CARD USECREDIT CARDSCREDIT CONSTRAINTSCREDIT COOPERATIVESCREDIT DECISIONSCREDIT GROWTHCREDIT HISTORIESCREDIT INFORMATIONCREDIT INFORMATION SYSTEMSCREDIT NEEDSCREDIT PRODUCTSCREDIT PROVISIONCREDIT REGISTRYCREDIT RISKCREDIT WORTHINESSCREDITSDEBTDEBT REPAYMENTDEBTSDELINQUENCYDEPOSITDEPOSIT ACCOUNTDEPOSIT ACCOUNTSDEPOSIT INSURANCEDEPOSIT SERVICESDEPOSITORSDEPOSITSDEVELOPING COUNTRIESDEVELOPMENT BANKDEVELOPMENT BANKSDISPUTE RESOLUTIONDOCUMENTATION REQUIREMENTSECONOMIC ANALYSISEDUCATIONAL ACTIVITIESEMPLOYEEENTERPRISE CREDITENTERPRISE CREDITSEQUIPMENTEQUITY CONTRIBUTIONSEXCHANGE RATESFACTORINGFAMILY MEMBERSFAVORABLE TERMSFINANCE COMPANIESFINANCIAL ACCESSFINANCIAL AUTHORITIESFINANCIAL CONGLOMERATESFINANCIAL COSTSFINANCIAL CRISISFINANCIAL EDUCATIONFINANCIAL INFRASTRUCTUREFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL LITERACYFINANCIAL SECTORFINANCIAL SECTOR ASSESSMENTFINANCIAL SERVICEFINANCIAL SERVICES PROVIDERSFINANCIAL STATEMENTSFINANCIAL SYSTEMFINANCIAL TRANSACTIONSFINANCING COSTFINANCING COSTSGENERAL PUBLICGOVERNMENT LENDINGGOVERNMENT SUPPORTGROSS DOMESTIC PRODUCTGROUP LOANSHOUSEHOLDSHOUSINGHOUSING FINANCEINCOME TAXINFORMATION TECHNOLOGYINSTRUMENTINTEREST INCOMEINTEREST MARGININTEREST RATEINTEREST RATESINTERNAL FINANCINGINTERNATIONAL BANKINTERNATIONAL BANKSINVENTORYJURISDICTIONLARGE FIRMSLEGAL FRAMEWORKLEGAL SYSTEMLEGISLATIONLENDERLENDER OF LAST RESORTLENDERSLENDING INSTITUTIONSLOANLOAN ACCOUNTSLOAN AMOUNTLOAN BALANCELOAN CATEGORIESLOAN COOPERATIVESLOAN MARKETLOAN PORTFOLIOLOAN SIZELOAN SIZESLOANS TO INDIVIDUALSLOW-INCOMELOW-INCOME BORROWERSLOW-INCOME CONSUMERMARKET DATAMARKET PARTICIPANTSMATURITYMEDIUM ENTERPRISESMICROENTERPRISESMICROFINANCEMICROFINANCE INSTITUTIONMICROFINANCE INSTITUTIONSMICROFINANCE LOANSMICROFINANCE SECTORMONETARY FUNDMORTGAGEMORTGAGE CREDITMORTGAGE FINANCEMORTGAGE LOANSMOVABLE ASSETSMUNICIPALITIESNATIONAL CREDITNET INTEREST MARGINNON-PERFORMING LOANNON-PERFORMING LOANSNONBANK INSTITUTIONSNPLOUTREACHOVERHEAD COSTSPAYMENTS SYSTEMSPENALTIESPOINT OF SALEPOINT-OF-SALEPORTFOLIOSPROFIT MARGINPRUDENTIAL REGULATIONPUBLIC BANKSPURCHASING POWERPURCHASING POWER PARITYRANGE OF CREDIT PRODUCTSREMITTANCEREMITTANCE SERVICERETURNSALARYSALESSAVINGSSAVINGS DEPOSITSAVINGS PRODUCTSSHARE OF CREDITSMALL BUSINESSESSMALL ENTERPRISESSMALL LOANSSMALLER ENTERPRISESMALLER ENTERPRISESSMALLER FIRMSSTATE BANKSSUPERVISORY AUTHORITYSUPERVISORY POWERSTAX ADVANTAGESTAX CODETAX COMPLIANCETAX LAWSTAX PROVISIONSTECHNICAL ASSISTANCETERM DEPOSITSTRANSPARENCYUNIONUNREGULATED FINANCIAL INSTITUTIONSUNSECURED LOANSUSE OF COLLATERALVALUABLEVALUE OF COLLATERALWORKING CAPITALReportWorld Bank10.1596/27768