El Salvador to Push Mobile Banking Services

A press release from the Central Reserve Bank of El Salvador (BCR) reads:

The presidents of the Central Reserve Bank (BCR), Carlos Acevedo, and Multisectoral Investment Bank (BMI), Oscar Lindo, the Superintendent of Financial System (SSF), Victor Ramirez, and the Resident Coordinator of United Nations System in El Salvador, Roberto Valent, have signed a memorandum of understanding for the development of mobile banking, an innovative project in the country and Latin America.

This initiative involves payment of services through mobile phones and seeks to include the poorest families in the financial system. This form of mobile banking reduces administrative technological and operational costs for financial system and therefore results in cheaper credit.

The Central Bank, the Multisectoral Investment Bank, the Superintendency of the Financial System and the United Nations, through the Joint Housing and Urban Settlements and Sustainable Production Program, will drive this project mainly for the purpose of facilitating access to housing loans for families living in slums.

Source: Central Reserve Bank of El Salvador

More on this topic

El Salvador: $400 million for loans to productive sector

December 2008

The main condition from the IDB is that the BCR use the funds to create a short-term credit portfolio in the financial system for working capital and international trade.

The Central Bank indicated that the reserves will be available at participating financial institutions, who have responded positively to channeling the resources to production activities, including small businesses.

$145 Million Freed to Banks in El Salvador

April 2009

With the backing of the Financial System Superintendent, the Central Reserve Bank began to release half of the additional reserve of $290 million.

Due to the celebration of the recent presidential elections, an additional reserve of 3% had been established, with the anticipation of money withdrawals and capital flight.

Central Bank Rejects Setting Maximum Interest Rates

September 2009

In El Salvador, opponents of the law are proposing a maximum credit card interest rate controlled by the Central Bank.

Authorities from the Central Bank (BCR), the Superintendence of the Financial System and the Consumer Defense Directorate, presented a new law proposal to the Legislative Assembly.

$290 Million to be Returned to Salvadoran Banking

March 2009

Banks in El Salvador will receive $290 million that where frozen as a liquidity reserve.

The Salvadoran Central Reserve Bank (BCR) had implemented a liquidity reserve of 3% of all deposits as protection against capital flight during the last presidential election.

According to what Daniel Choto wrote in elsalvador.com, the BCR will begin returning the money gradually, freeing $58 million every fourteen days, in 5 installments.