A. M. 
Deposits in the Financial System grew by 19.33% year-on-year in October 2025, an unprecedented increase in recent years. This growth comes primarily from the private sector, which has increased its savings and time deposits by more than US$3,460.6 million, boosting the liquidity capacity of banking institutions.
The surge in deposits reflects greater confidence among economic agents and a preference for holding funds in formal financial instruments, in a context of macroeconomic stability and competitive interest rates.
Remittances to sustain financial dynamism
The growth in deposits coincides with an above-average increase in remittances. 86.3% of the 1.5 million salvadorans living abroad send remittances to their families in El Salvador, which continue to be a key pillar of foreign currency flow into the country. Family transfers continue to strengthen, contributing to both domestic consumption and bank savings.
This phenomenon reinforces the trend observed in recent years, where remittances have become a constant source of liquidity and predictability for salvadoran families.
Loans are growing, but at a moderate pace
While deposit-taking is reaching record levels, loan growth is more moderate. Year-on-year, loans increased by US$1,193.9 million, equivalent to a 6.27% growth rate. Although credit expansion continues, its pace suggests greater caution among banks given the current economic and regulatory conditions.
Liquidity and IMF commitments
The current environment favors the accumulation of greater liquidity reserves by the financial system, in line with commitments made to the IMF. This position strengthens the system’s stability and ensures a more robust response to potential external shocks or inflationary pressures.
Analysts point out that this scenario creates room for greater financial intermediation in the coming months, provided global conditions remain stable and private sector confidence remains strong.
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