After financial regulatory bill, assembly discusses extending reforms

Thursday, January 20, 2011

After the passage of a financial regulatory bill earlier this month, the finance committee of El Salvador's national assembly began discussion on a series of reforms that seek to clear up the responsibilities of the current regulatory framework, including the powers in the central bank act and the national banking law.

With regard to central bank BCR, the changes being discussed deal with BCR's new technical regulatory capacity granted by the financial regulatory bill, the assembly said in a press release.

As for the banking bill, the reforms would modify the calculation and use of banks' liquidity reserves denominated in US dollars, or US dollar-denominated securities instruments, which will have to be kept in cash or invested abroad, in highly conservative risk profile portfolios.

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As for the securities bill, the modifications would mandate that all professionals working in broker houses or in the securities market be registered with the newly approved financial system regulator, the release reads.