El Salvador’s financial indicators continue their upward trajectory, demonstrating the trust of investors in national regulations and the opportunities within the Salvadoran stock market. According to the Superintendencia del Sistema Financiero (SSF), as of August, both open and closed-end investment funds saw a remarkable year-on-year growth of 24.39% in their assets, equivalent to $107.58 million more than the previous year. This surge has propelled the total assets of these funds to $548.69 million, underscoring the investors’ confidence in the country’s regulatory environment and investment options.
Investor Confidence in Regulatory Environment: The increase in investment funds is indicative of the transparency and security provided by regulated financial mechanisms. The SSF emphasized this by stating, “Investment funds are subject to supervision and regulations, providing greater transparency and security to investors. By the end of August, they recorded a year-on-year growth of $107.58 million in their assets.” This boost signifies that various investors have chosen to embrace these instruments to help their savings flourish.
Rise in Banking Deposits: In addition to investment funds, El Salvador’s financial structure has fostered confidence among users, leading to increased deposits in their bank accounts. Up until the eighth month of the year, deposits showed a point-to-point increase of $912.1 million (5.2% more). Consequently, the total deposits in banks, cooperatives, and savings and credit societies (SAC) reached $18,313.91 million, a substantial figure that reflects the robustness and good health of the financial system. Furthermore, savings accounts witnessed a 3.1% growth in the same period, with an increase of $183.5 million compared to 2022.
Growth in the Integrated Securities Market: The regional platform established several years ago between the stock exchanges of El Salvador and Panama continues to exhibit positive performance. According to the SSF, the volumes traded in this market experienced a year-on-year increase of $63.64 million by the end of August. “The amounts traded on the integrated stock exchange between Panama and El Salvador reached $402.72 million by the end of August, stimulating economic growth in both markets,” highlighted an institution’s publication.
It’s noteworthy that this mechanism for integrating stock exchanges, established in 2015, has piqued the interest of other countries in the region, including Nicaragua, Honduras, Guatemala, Costa Rica, and the Dominican Republic.
In recent statements, the President of the Bolsa de Valores de El Salvador (BVES), Rolando Duarte, announced that Nicaragua has already joined the initiative, and Honduras is also on the brink of becoming a part of it. This regional integration is poised to further bolster the financial stability and growth prospects of the entire Central American region.