A. M. 
The Legislative Assembly’s Technology, Tourism, and Investment Commission issued a favorable opinion to repeal Article 10 of the Banking Law, in force since 1999, with the aim of promoting competition in financial intermediation, attracting international investment, and facilitating new sources of access to credit for the population. The proposal will be put to a vote at the next plenary session, where it will be decided whether the reform will be approved.
The initiative was presented at the request of the Ministerio de Economía de El Salvador (MINEC), which argued the need to remove barriers that, according to the ministry, limit the entry of new competitors into the salvadoran financial system.
Currently, Article 10 establishes that 51% of the shares of the country’s banks must be held by a specific type of shareholder, either Salvadoran or Central American individuals, or banks of Central American origin. If this provision is repealed, that restriction would be eliminated, allowing the participation of other investors who do not necessarily meet that nationality criterion.
To further the technical analysis, the commission welcomed Evelyn Gracias, Superintendent of the Superintendencia del Sistema Financiero de El Salvador, and Daysi Minero, deputy Superintendent of Banks, insurance companies, and other financial institutions.
As Superintendent Gracias explained, opening the market to new capital would increase competition in financial intermediation, which in turn would generate more financing options for citizens and businesses. She pointed out that eliminating legal restrictions that hinder the entry of new players is key to expanding the supply of credit and responding to the investment, consumption, and development needs of different economic sectors.
The chair of the commission, Representative Dania González, stated that greater competition translates into better quality financial services. She added that revising regulations in force since 1999 responds to the need to update the legal framework in line with current economic dynamics.
If approved by the full legislature, the repeal of Article 10 would modify the conditions for shareholding in the Salvadoran banking system, with the aim of boosting the sector, attracting high-level investment, and expanding the financing alternatives available in the country.
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