El Salvador’s financial system demonstrated remarkable momentum during the first half of 2026, buoyed by expanding credit demand and strong depositor trust. According to data from the El Salvador Banking Association (Abansa), total loan portfolios across its 11 member institutions expanded by 10.4% year-over-year to reach $19,978.8 million—an increase of $1,876.4 million compared to June 2025. Simultaneously, total deposits surged 13.4% to $23,259 million, highlighting robust liquidity and growing financial engagement across households and businesses.

Credit allocation was heavily spearheaded by commercial and industrial activity, with enterprise lending expanding 13.6% to $10,636 million and accounting for 53% of the entire credit market. Among individual economic sectors, construction led the charge with an impressive 30.9% growth rate ($1,518.5 million balance), followed closely by the services sector (+20.3%) and commerce (+11.2%). Additionally, financing for micro, small, and medium-sized enterprises (MSMEs) delivered strong double-digit growth of 12.9%, reaching $2,960.85 million.

Beyond corporate financing, consumer and housing markets also posted steady gains, with residential mortgages rising 7.9% to $3,108.7 million and consumer credit growing 6.5% to $6,239.5 million. Representatives from Abansa emphasized that these trends reflect a healthy economic feedback loop, noting that “more available credit means new opportunities to purchase homes, invest in businesses, launch educational projects, and respond to household needs.”Overall banking assets subsequently reached $29,523.9 million, up 10.7% year-over-year.

The overall stability of the banking system remains solid, supported by a reserve coverage ratio of 146.07%, meaning banks hold $1.46 in reserves for every $1 of past-due loans. Digital transactional activity also surged as interbank transfers jumped 44.6% to reach 7.1 million operations totaling $5,766 million. Commenting on the rapid deposit growth, Abansa framed the expansion as “a reflection of a saver who trusts the banking system as a safe destination for their money.”