2010年-世界发展银行全球_El_Salvador_Financial_Sector_Assessment_Program_Update___Financial_Inclusion_19页_872kb

Financial Sector Assessment Program Update: El Salvador - Financial Inclusion

Executive Summary

El Salvador has seen an expansion in financial service provision since the 2004 FSAP update. However, access to financial services remains limited, particularly in rural and less economically developed regions. Approximately 47% of adults in El Salvador have deposit accounts at regulated financial institutions, aligning with the Latin American average. Despite this, branch coverage and financial infrastructure lag behind some comparator countries. Financial activity is concentrated in San Salvador, where 52% of deposits and 66% of loans are held, while other departments are underserved. Mobile banking and correspondent banking could improve access in these underserved areas. Consumer credit has increased significantly, while SME credit has declined, raising concerns about overindebtedness and limited access to financing for small businesses. The legal and regulatory framework for credit and financial services needs improvement to support SMEs and enhance transparency and consumer protection.

Core Content

Financial Access and Usage Patterns

• Financial Service Expansion: Since 2004, there has been growth in both deposit and credit accounts, as well as physical access points like branches and ATMs.
• Regional Comparison: El Salvador's financial infrastructure, particularly branch and ATM coverage, is below that of some Central American countries.
• Geographic Disparities: San Salvador holds the majority of financial activity, with the northern departments being significantly underserved.
• Mobile Banking Potential: Correspondent agents and mobile payment systems could increase access to financial services in rural areas.
• Credit Distribution: Over 80% of loans have a balance of less than $5,000, and mid-sized loans between $30,000 and $75,000 are particularly difficult to obtain.

Main Policy Recommendations

Key Market Participants

• Regulated Institutions: Include commercial banks, cooperative banks, some savings and loans societies (S&Ls), worker's banks, and the FEDECREDITO federation.
• Unregulated Institutions: Include savings and loans cooperative associations, cajas de credito, non-bank finance companies, and NGOs.
• Market Focus: Regulated institutions tend to focus on higher-value loans, while unregulated entities serve poorer clients with smaller loan sizes.
• Financial Performance:
  • Regulated cooperative banks report higher capital adequacy ratios (CAR) and profitability compared to unregulated institutions.
  • S&Ls have the highest net interest margins (21.1%) due to less competition in the low-income housing market.
  • Commercial banks have lower margins (6.3%) than public and cooperative banks, but they are more profitable in absolute terms.

Legal and Regulatory Issues

• Credit Information Systems: Inefficient and fragmented, leading to over-collateralization and limited access to credit.
• Non-Performing Loans (NPLs): NPLs for unregulated institutions can be as high as 10%, while regulated cooperative banks have lower NPLs (2.9%).
• Factoring: Growing outside the banking system, but legal framework is weak, limiting its potential for SMEs.
• Leasing: Limited in scale and discouraged by tax laws that impose higher income taxes on leasing operations.
• Consumer Protection: The consumer defense agency (Defensa al Consumidor) lacks sufficient resources to enforce consumer protection laws effectively.
• Legal Framework for Microfinance: No specific treatment for microfinance loans in the regulatory code, while prudential norms favor consumer and mortgage credit.

Data and Trends

• Consumer Credit Growth: Increased by 33% between 2004 and 2009, with a significant portion of borrowers having multiple credit accounts.
• SME Credit Decline: Credit to SMEs fell from 16% to 9% of total firm credit between 2008 and 2009.
• Microfinance Sector: Estimated to be between $223 million and $911 million, with a higher penetration than some Latin American countries.
• Deposit Trends: Sight deposits increased by 24% from 2004 to 2009, while term deposits decreased by a similar amount.
• Average Loan Size: Varies significantly by institution type, with S&Ls and unregulated entities offering smaller loans, while commercial and cooperative banks offer larger ones.

Conclusion

El Salvador's financial inclusion efforts are progressing, but significant challenges remain. The concentration of financial activity in San Salvador highlights the need for better distribution of services across the country. Regulatory improvements, particularly in the areas of consumer protection, factoring, and the treatment of microfinance and SME credit, are essential to expand access and support inclusive growth. Mobile banking and correspondent banking are promising tools to reach underserved populations. Strengthening the legal and regulatory framework, enhancing transparency, and improving consumer protection will be key to achieving broader financial inclusion.