Salvadorans have strengthened their savings habit this year and have shown more confidence in the financial system, said the Superintendent of the Financial System, Mario Menéndez, in an interview with “Diario El Salvador.”
“We feel very optimistic because we have had quite significant growth at the level of the entire financial system. For example, the savings culture in the country has been strengthened, and this is reflected in the deposit figures,” Menéndez said.
This assertion is supported by the most recent data on savings deposits from the Superintendency of the Financial System (SSF), which as of November 30 registered an interannual growth of $580.3 million, that is, 10.8% more than in 2021. This means that at the end of last month, the system already had $5,932.7 million.
According to the official, actions such as the simplification of requirements to open accounts in financial institutions and the elimination of commissions that were charged to maintain savings, have contributed to strengthening the system.
This growth is also reflected in the evolution of total deposits. Until November 30, this indicator reached $17,642.46 million, with a growth in the point-to-point comparison of 4.6%, corresponding to $772.7 million more.
Likewise, since October 2019, the SSF reports that the banking sector has increased the number of savings accounts with simplified requirements offered to the population. Until October, 191,030 accounts were registered that were opened from mobile devices.
On the other hand, the superintendent stressed that the constant growth in deposits made in the country’s banks has allowed credit interest rates to not register significant increases, despite the frequent changes made by the Federal Reserve (Fed, for its acronym in English).
«95% of all the funds that are available in the system are the product of local savings. There is little financing that comes from multilaterals or foreign correspondent banks. That helps protect us from the interest rate growth effects that the Fed has imposed,” he noted.
The SSF reported that as of November 30, loans granted by banks reached $17,437.1 million, with a growth of $1,536.8 million, that is, 9.7% more than November 2021.
«We have an increase in credit levels, which speaks of the dynamism in the economy, a dynamism that is being translated into economic growth. We have a diversity of credit, both consumer credit and investment credit. Investment credits in the trade and tourism sectors have grown », he concluded.