The government of El Salvador asked the Legislative Assembly to reform the Banking Law to incorporate regulations that allow the creation of private investment banks in the country.
The initiative was received at this day’s meeting of the Assembly’s technology, tourism and investment commission, which read the file, gave it for receipt but did not delve into the content of the project.
The commission ended its meeting as soon as the bill was read, and it was not indicated whether it is intended to invite government officials to explain the initiative.
The proposal creates a chapter in the Banks Act to regulate the creation and operation of private investment banks, on the grounds that they enhance the country’s economic development.
Among other things, in order to be constituted, they must do so as a public limited company of variable capital and must have at least two shareholders, having a minimum capital of $50 million.
The services that these banks will provide may be effective in legal tender currency of the country. Therefore, they will be able to use dollars or bitcoin.
In order to be a customer of these banks it will be necessary to be recognized as a “sophisticated investor,” for which conditions must be met such as being aware of the risks of investments or having a minimum capital of $250 thousand.
This article has been translated after first appearing in La Prensa Grafica