What is the Salvadoran Financial Superintendent (SVS)? Salvadoran Financial Superintendent (SVS) Review, Features

The Salvadoran Financial Superintendence (SVS) is a legislative body approved by the Legislative Assembly on January 14, 2011. It is the only supervisory body under the legal framework of financial system supervision, combining the three functions of supervising the financial system, pensions and securities, according to the newly enacted “Law on Supervision and Administration of the Financial System”.

About the Salvadoran Financial Superintendent (SVS)

• The purpose of the SVS is to maintain the stability of the financial system, ensure its efficiency and transparency, and ensure that all actions are in line with international best practices.
• This new entity was responsible for supervising the individual and combined activities of system institutions: banks, cooperative banks, insurance companies, savings and loans, securities, pension funds, financial groups, credit bureaus, commodity exchanges, ISSS professional institutional risk.
• On the premise of complying with the laws, regulations, technical standards and other legal provisions of the financial system, actively supervise the risks of member institutions, promote the efficient, transparent and orderly operation of the financial system, and supervise the regulated institutions to conduct their business in accordance with the legislation.

Powers of the Salvadoran Financial Superintendent (SVS)

1. Issue necessary resolutions within the powers conferred by law;
2. Determine policies and criteria for conducting monitoring;
3. To supervise individual and collective members in accordance with other subjects prescribed by this Law;
4. Authorize the public to advertise, establish, operate, conduct business, and change the social contract in accordance with special provisions of the matter; authorize organizations or entities established under foreign laws, planning to operate as banks or insurance companies, to establish branches and set up offices for banks or serve as customer information centers, and authorize the closure of companies that invest loans or conduct investment operations in the country without borrowing;
5. Understand the risk management, codes of conduct and other requirements of financial system members in terms of internal policies;
6. It has the power to suspend operations, withdraw operations and close down financial system members where legally applicable. In the latter case, it coordinates actions with other agencies and imposes appropriate sanctions in accordance with the law.