In recent years a bill to replace the Financial System Superintendency and its stock market and pension counterparts with a new super-regulator has been on and off Congress's legislative agenda. However, new efforts to approve the bill before the end of 2007 follow a wave of recent acquisitions of local financial institutions by foreign groups.
The Central Reserve Bank of El Salvador has issued new regulations applicable to financial institutions domiciled outside El Salvador which wish to qualify to receive income tax benefits on interest received from loans granted to Salvadoran entities or individuals residing in El Salvador.
The Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR) provides an innovative regulatory environment for cross-border trade in financial services between countries with differing systems of civil and common law. The agreement encourages greater transparency, provides dispute resolution mechanisms and limits the market access restrictions on financial institutions.