Enhancing Financial Stability in El Salvador


The Salvadoran authorities wanted to develop a strategy to enhance financial stability through stronger financial oversight and improved crisis prevention and management.


The IMF worked with the government to thoroughly review the financial sector. The resulting reform strategy focused on improving risk-based supervision, a strong crisis management framework, and a modernized securities market.


Around 120 stakeholders participated in a National Forum on Financial Stability to garner broader support for reform efforts and have an open dialogue on the best way forward for moving ahead with institutional reform. The Salvadoran government continues to work with the IMF to implement recommendations on crisis prevention and management that enhance financial stability and oversight.