El Salvador: Savings Cooperatives Growing

Between 2006 and 2013 the number of agencies in the network of cooperatives in the country doubled.

Tuesday, March 11, 2014

Salvadoran Credit Unions have experienced a significant increase in the last year in order to expand financial services in most areas of the country.

The Federation of Savings and Credit Cooperatives of El Salvador (Fedecaces) announced that "growth is supported by an increase of over 20% in the portfolio of loans and deposits, after the close of 2013."

The strategy of approaching the population "resulted in a portfolio of deposits of $311 million dollars and a credit that totaled $344 million at the end of 2013."

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Costa Rica: Financial Cooperatives up to June 2017

August 2017

In the second quarter of 2017, three entities accounted for 61% of the assets of the cooperative system, which represents 11% of the assets of the Costa Rican financial system.

From a report by Fitch Ratings :

Concentration of Business Model: The cooperative sector has moderate participation and accounts for 11% of assets in the national financial system. The participation of entities rated by Fitch Ratings (Coopenae, Coopeservidores and Coopeande No.1) has remained high and relatively stable in relation to the regulated cooperative system, accounting for 61.3% of the sector's assets. The business model continues to focus on consumer credit for its associates, mostly low- and middle-income public sector employees. Fitch believes that cooperatives face the challenge of diversifying products in their portfolio to reduce concentration risk in the consumer segment, which is typically more vulnerable to the business cycle. 

New Rules for Credit Unions in El Salvador

June 2017

A bill introduced in the Legislative Assembly proposes regulating cooperatives and credit associations whose savings range from $30 million to $92 million.

The bill, prepared by the Federation of Association of Savings and Credit Cooperatives of El Salvador (Fedecaces), proposes establishing a different regulation, more appropriate to the size and characteristics of these entities.

El Salvador: Unions Oppose Greater Financial Regulation

September 2016

Unions are opposed to the legal reform which aims to extend the scope of the supervision of the Superintendent of Financial System over savings and loans cooperatives.

In the view of Julio Cesar Portillo, secretary of the board of the National Commission for credit unions in El Salvador and CEO of Co-Andes de R.L.

Order to Liquidate Cooperative in Panama

March 2013

The Panamanian Autonomous Cooperative Institute yesterday ordered the liquidation of the Savings and Credit Cooperative for Employees of the Social Security Fund, due to irregularities in its operations.

Cooperativa de Ahorro y Crédito Empleados de la Caja de Seguro Social (Coacecss), was seized in June last year, triggered by an "administrative and financial deterioration" in its handling, specifically for opening foreign accounts for excessive amounts on the entity's balance sheet.