El Salvador discusses reforming co-op bank, credit union law

Thursday, December 1, 2016

The finance committee of El Salvador's legislative assembly this week held its second consultation forum to draft amendments to the law regulating co-op banks and savings & credit unions.

The proposals are meant to "strengthen the development and financial integration of the country, making the work of these agencies more dynamic and effective, so that they can be competitive at the regional level," according to a congressional release.

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Congresswoman Margarita López noted that the reforms "seek to change the way in which the financial institutions of the country are being regulated."

She also suggested that credit unions should be supervised by financial and insurance regulator SSF.

Commission president Francis Zablah said that, if passed, the reforms should have a number of positive effects on the country's financial institutions, including improved access and availability of financial services for both urban and rural communities.