El Salvador : Technical Note on Safety Nets and Crisis Management Arrangements

Author/Editor:

International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

February 11, 2014

Electronic Access:

Free Full text (PDF file size is 522 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This Technical Note analyzes Safety Nets and Crisis Management Arrangements in El Salvador. In El Salvador, the banking safety net—emergency liquidity assistance, resolution and deposit insurance—faces particular challenges given it operates in the context of official dollarization. Although banks’ liquid assets holdings are high, there are some weaknesses with the liquidity requirements in terms of dealing with banks’ individual liquidity risks. The bank resolution scheme, which has not been tested, and the deposit insurance fund, which has insufficient funds, both need to be strengthened.

Series:

Country Report No. 14/46

Subject:

English

Publication Date:

February 11, 2014

ISBN/ISSN:

9781475588118/1934-7685

Stock No:

1SLVEA2014003

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

25

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