{
  "title": "El Salvador: Technical Note on Safety Nets and Crisis Management Arrangements",
  "publication": "IMF Staff Country Reports, February 11, 2014",
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  "summary": "This Technical Note presents an assessment of safety nets and crisis management arrangements in El Salvador. In El Salvador, the bank safety net—emergency liquidity assistance, resolution, and deposit insurance—faces particular challenges given that it operates in the context of official dollarizati",
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    {
      "heading": "Overview and main findings",
      "content": "- The Technical Note assesses safety nets and crisis management arrangements in El Salvador.\n- The bank safety net—emergency liquidity assistance, resolution, and deposit insurance—faces particular challenges given that it operates in the context of official dollarization.\n- To address systemic liquidity risk in the context of official dollarization, the Banco Central de Reservas should be provided with more powers and funds to provide emergency liquidity assistance to banks.\n- The bank resolution plan has not been tested.\n- The deposit insurance fund has insufficient funds.\n- The authorities should consider making the necessary changes to the banking law to strengthen the resolution and depositor insurance frameworks, and should issue the necessary regulations and guidelines."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Provide the Banco Central de Reservas with more powers to provide emergency liquidity assistance to banks.\n- Provide the Banco Central de Reservas with more funds to provide emergency liquidity assistance to banks.\n- Strengthen the bank resolution plan and test it.\n- Increase resources or reform the deposit insurance fund to address its insufficiency.\n- Amend the banking law to strengthen resolution and depositor insurance frameworks.\n- Issue the necessary regulations and guidelines to support the strengthened frameworks."
    },
    {
      "heading": "Subjects and keywords (as listed)",
      "content": "- Subjects: Asset and liability management; Bank resolution; Bank resolution framework; Banking; Deposit insurance; Financial crises; Financial regulation and supervision; Legal support in revenue administration; Liquidity; Liquidity risk; Revenue administration\n- Keywords: Banco Central de Reservas; bank; Bank resolution; Bank resolution framework; banking law; BCR representative; board of directors; bridge bank; CR; deposit; deposit insurance; financial institution; Global; illiquid bank; insurance reserve; insurer to a bank resolution process; ISCR; Legal support in revenue administration; Liquidity; Liquidity risk; parent bank; resolution process\n\n---\n\n Content in this bundle\n\n- cr1446\n  - cr1446 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - cr1446 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: February 11, 2014",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781475588118.002",
    "The Technical Note assesses safety nets and crisis management arrangements in El Salvador.",
    "The bank safety net—emergency liquidity assistance, resolution, and deposit insurance—faces particular challenges given that it operates in the context of official dollarization.",
    "To address systemic liquidity risk in the context of official dollarization, the Banco Central de Reservas should be provided with more powers and funds to provide emergency liquidity assistance to banks.",
    "The bank resolution plan has not been tested.",
    "The deposit insurance fund has insufficient funds.",
    "The authorities should consider making the necessary changes to the banking law to strengthen the resolution and depositor insurance frameworks, and should issue the necessary regulations and guidelines.",
    "Provide the Banco Central de Reservas with more powers to provide emergency liquidity assistance to banks.",
    "Provide the Banco Central de Reservas with more funds to provide emergency liquidity assistance to banks.",
    "Strengthen the bank resolution plan and test it.",
    "Increase resources or reform the deposit insurance fund to address its insufficiency.",
    "Amend the banking law to strengthen resolution and depositor insurance frameworks.",
    "Issue the necessary regulations and guidelines to support the strengthened frameworks.",
    "Subjects: Asset and liability management; Bank resolution; Bank resolution framework; Banking; Deposit insurance; Financial crises; Financial regulation and supervision; Legal support in revenue administration; Liquidity; Liquidity risk; Revenue administration",
    "Keywords: Banco Central de Reservas; bank; Bank resolution; Bank resolution framework; banking law; BCR representative; board of directors; bridge bank; CR; deposit; deposit insurance; financial institution; Global; illiquid bank; insurance reserve; insurer to a bank resolution process; ISCR; Legal support in revenue administration; Liquidity; Liquidity risk; parent bank; resolution process",
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