Friday, 25 February 2022 02:58

Electronic banking transactions increased 47% as of december 2021

Written by Evelyn Alas

In a bulletin issued by the Asociación Bancaria Salvadoreña (ABANSA), digital platforms allowed banks to offer a greater coverage of services during 2021.

Transactions through electronic banking increased by 47% annually to december 2021 and those made by ACH (UNI) increased by 83.9% in the same period.

Service coverage grew for the fifth consecutive year; customer service channels expanded 22%. Simplified savings accounts increased +65.3%, reaching more than 191 thousand accounts in member banks as of december 2021.

Likewise, bank credit increased 6.3% (1.1% in the previous year), leveraging the increase in production, the Gross Domestic Product (GDP) increased nearly 10%; financing to companies increased 8.7% (3% a year earlier), the highest growth rate in the last 13 years, highlighting the Industry and Commerce sectors.

In addition, the balance of credit to Micro Small and Medium-Sized Enterprises (MSMEs) increased +10%, supporting the activity of this important sector. Deposits increased 2.4% annually as of december 2021, reflecting the growth of the economy and the confidence of depositors in banks.

The most representative were time deposits (33%, US$5,256 million), followed by savings deposits (33%, US$5,120 million) and current account deposits (32%, US$4,963 million); the remaining 2% were restricted and inactive.

The bank preserves high liquidity and solvency above the regulatory level; reserve coverage was above 150% last year and past due loans/gross loans) stood at 1.9% as of december 2021.

In 2022, banking activity will reflect the dynamism of the economy; according to the International Monetary Fund (IMF), the core challenge continues to be making public debt sustainable, as this is a determining factor for improving the country's risk rating.