The Salvadoran financial landscape is showing remarkable resilience and momentum, with bank credits reaching a total of $19,238 million through February 2026. According to the latest Financial Performance Report from the Salvadoran Banking Association (Abansa), this represents a 9% year-on-year growth, injecting more than $1,596 million in new placements into the economy. This upward trend underscores a strengthening environment for both private investment and personal financing across the nation.
The driving force behind this expansion is the construction sector, which witnessed a staggering 32.2% increase, totaling $347 million in additional funding. This boom is complemented by significant activity in commerce and services, which grew by $273 million and $257 million respectively. “The banking sector in El Salvador continues to show positive results,” Abansa noted, emphasizing that this credit flow is a catalyst for job creation and overall economic dynamism.
Corporate appetite for expansion is outpacing individual borrowing, with business loans accelerating at a 13% rate, compared to a 4.8% increase in credit for individuals. However, the housing market reached a historic milestone: the mortgage portfolio grew by 5.3%, marking the highest increase recorded in the last 10 years. This surge in real estate financing signals renewed confidence among Salvadorans looking to secure long-term assets.
Financial stability remains a cornerstone of this growth, as the quality of the credit portfolio has improved significantly. The balance of overdue loans dropped to $276 million, reflecting a 9% decrease compared to the previous year. This reduction in risk, paired with a robust 16.8% expansion in bank deposits—which grew by $3,259 million—provides the banking system with a solid liquidity cushion to sustain future lending.
Ultimately, the data reflects a banking system that is not only growing but becoming more efficient at managing risk. With double-digit growth in key sectors and a decade-high peak in housing, El Salvador’s financial sector is positioning itself as a primary engine for the country’s development. As Abansa suggests, this synergy between high liquidity and strategic credit placement “could translate into more jobs and greater economic dynamism” for the years to come.