Saturday, 26 February 2022 05:09

Deposits in El Salvador grew +2.4% at the end of 2021: ABANSA

Written by Evelyn Alas

According to a report prepared by the Asociación Bancaria Salvadoreña (ABANSA), deposits grew +2.4% at the end of 2021, reflecting the economic activity and confidence of salvadoran depositors.

The report shows that as a proportion of the Gross Domestic Product (GDP), deposits reached 56.7% as of december last year (US$15,619 million), which represents the depth and importance of the banking system in the economy.

It also points out that banking is key to economic dynamism, since it supports the channeling of savings to investment in an efficient manner, and maintains secure payment networks that accelerate transactions between individuals/companies in a reliable manner.

Time deposits continued to be the most representative (33%, US$ 5,256 million), showing the confidence of customers. During 2021 banks continued to show their enormous commitment to economic recovery, credit grew 6.3% (51.4% of GDP).

ABANSA forecasts that the world GDP will recover in 2021, the forecast of the International Monetary Fund (IMF) indicates 5.9% and for the United States it is estimated at 5.6%. El Salvador registered greater dynamism with a projected economic growth of around 10%, supported by a favorable external environment that led to significant increases in remittances (26.8%) and exports (31.8%), as well as certain internal variables, such as bank credit.

Member banks contributed to shaping the future in a sustainable way, the Electricity and Services sector increased more than 20% for the second consecutive year (+US$85 million, +22%); member banks promote renewable energy projects.