New Rules for Credit Unions in El Salvador

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

Wednesday, June 7, 2017

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.

Héctor Córdoba, financial manager of Fedecaces, explained to Elmundo.sv that "... they propose that those regulated by the Law be those cooperative associations with deposits and contributions that are in excess of $30 million and up to $92.8 million. "Entities with deposits above this amount, would be regulated by the Law on Cooperative Banks."

Cordoba detailed that the proposal "...includes regulations for the 'functioning and operation' of these cooperatives and establishes legal dispositions of a financial nature aimed at their protection and promotion, facilitating their organization, expansion and financing."

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