International Monetary FundWorld Bank2017-08-102017-08-102010-11https://hdl.handle.net/10986/27737The global financial crisis and ensuing credit crunch has revived the discussion on the role of public sector in the financial system around the world and in El Salvador, authorities have announced plans to step up their activities. A clearly defined strategy for the public banks, focused on complementing private sector activity, is necessary as their activities expand to improve access to finance and diversify the sources of funding. Any process of growth needs to accompany by improvement in risk management processes, governance arrangements and enhanced supervision. Going forward, the two public retail banks should increase their specialization in different market segments. The development bank role can be enhanced while maintaining its second tier status. To make the guarantee funds effective, in addition to scale their size, several operational features need to be improved.en-USCC BY 3.0 IGOACCESS TO CAPITALACCESS TO CREDITACCESS TO FINANCEACCOUNTABILITYACCOUNTINGACCOUNTING TREATMENTADMINISTRATIVE COSTSAGRICULTURAL PRODUCTSAGRICULTURAL SECTORASSET QUALITYASYMMETRIC INFORMATIONAUDITINGBALANCE SHEETBANK CREDITBANK FINANCINGBANK LOANBANKING SECTORBANKING SERVICESBANKING SYSTEMBANKRUPTCYBANKSBLUE CHIPBORROWERBRANCH NETWORKBUSINESS PLANBUSINESS PLANSBUSINESS STRATEGIESCAPITAL ADEQUACYCAPITAL FINANCECAPITAL MARKETCAPITAL MARKETSCAPITALIZATIONCENTRAL BANKSCOLLATERALCOLLATERAL REQUIREMENTSCOLLECTION PROCESSESCOMMERCIAL BANKCOMMERCIAL PAPERCONSOLIDATIONCONVERTIBLE DEBENTURESCOOPERATIVE BANKSCOOPERATIVESCORPORATE GOVERNANCECORRUPTIONCREDIBILITYCREDIT ANALYSISCREDIT CONSTRAINED FIRMSCREDIT CRUNCHCREDIT ENHANCEMENTSCREDIT GUARANTEECREDIT GUARANTEESCREDIT HISTORYCREDIT INSTITUTIONSCREDIT LIMITSCREDIT LINESCREDIT ORIGINATIONCREDIT PORTFOLIOCREDIT PROCESSCREDIT PROCESSESCREDIT PROVISIONCREDIT RISKCREDIT RISKSCREDITORSCREDITSDEBTDEBT FINANCINGDEPOSITDEPOSITSDERIVATIVESDEVELOPMENT BANKDEVELOPMENT BANKSDIRECT CREDITDIRECT FINANCINGDISBURSEMENTSDIVERSIFICATIONEARNING ASSETSECONOMIC GROWTHECONOMIES OF SCALEELIGIBILITY CRITERIAEMERGING ECONOMIESEMPLOYEEEMPLOYMENTEQUIPMENTEQUITY FUNDSEQUITY INVESTMENTSEXTERNALITIESFACTORINGFARMERSFEDERAL RESERVEFINANCESFINANCIAL AUTHORITIESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL LIABILITIESFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL PERFORMANCEFINANCIAL PLAYERSFINANCIAL PRODUCTSFINANCIAL SECTOR ASSESSMENTFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL SUSTAINABILITYFINANCIAL SYSTEMFINANCIAL SYSTEMSFISCAL LOSSESFOREIGN BANKSFOREIGN EXCHANGEFUNDING SOURCEGOVERNANCE STANDARDSGROSS DOMESTIC PRODUCTGUARANTEE FUNDGUARANTEE FUNDSGUARANTEE SCHEMESGUARANTIESGUARANTORHOUSINGINSTITUTIONAL CAPACITYINSURANCEINSURED DEPOSITSINTEREST EXPENSEINTEREST INCOMEINTEREST RATEINTEREST RATE CEILINGSINTEREST RATESINTERMEDIARY BANKSINTERNATIONAL BANKINTERNATIONAL BANKSINTERNATIONAL MARKETSINVESTMENT BANKINVESTMENT PROJECTSISSUANCESLEGAL CONSTRAINTSLEGAL PROVISIONSLENDERLENDER OF LAST RESORTLENDERSLENDING PORTFOLIOLEVYLINE OF CREDITSLINES OF CREDITLIQUID ASSETSLIQUIDATIONSLIQUIDITYLOANLOAN APPLICATIONSLOAN DEFAULTSLOAN PORTFOLIOLOAN SIZELONG TERM FINANCINGLONG-TERM CAPITALLONG-TERM FINANCELONG-TERM FUNDINGLOW INTEREST RATESMANDATESMARKET DEVELOPMENTMARKET DISCIPLINEMARKET FAILUREMARKET FAILURESMARKET INTEREST RATEMARKET INTEREST RATESMATURITIESMICROCREDITMICROFINANCEMONETARY FUNDMONETARY POLICYMORTGAGEMUTUAL FUNDSNATIONAL CREDITNATIONAL TREASURYNET INTEREST MARGINNON-PERFORMING LOANNON-PERFORMING LOANSNPLOPERATING COSTSOPERATING EXPENSESOUTSTANDING LOANPARTIAL CREDITPENSIONPENSION FUNDPENSION FUNDSPLEDGE COLLATERALPRIVATE BANKSPRIVATE COMMERCIAL BANKSPRIVATE CREDITORSPRIVATE EQUITYPRIVATE FINANCIAL SECTORPRIVATE INVESTMENTPRIVATIZATIONSPROFITABILITYPRUDENTIAL REGULATIONPUBLIC BANKPUBLIC BANKSRECESSIONRESERVE ACCOUNTSRESERVE REQUIREMENTSRETAIL BANKSRETURNRETURN ON ASSETSRETURN ON EQUITYRETURNSRISK AVERSIONRISK MANAGEMENTRISK WEIGHTED ASSETSSECURITIESSECURITIES ISSUANCESMALL BANKSMALL LOANSSOCIAL CAPITALSOCIAL DEVELOPMENTSOLVENCYSTATE INTERVENTIONSTATE OWNED BANKSSTUDENT LOANSSUBSIDIARIESSUBSIDIARYTECHNICAL ASSISTANCETELECOMMUNICATIONSTIER 1 CAPITALTRANSACTION COSTTRANSACTION COSTSTREASURYTRUST FUNDSUNEMPLOYMENTReportWorld Bank10.1596/27737