Subsidies in development banking

Abstract

The objective of this research is to present international evidence on the implementation of subsidies within the operating framework of development banking, focusing mainly on countries with socioeconomic characteristics similar to those of our society. On the other hand, it also intends to make a real approximation of the implementation of this type of policies in the Salvadoran economy, as well as in public finances, taking into account the experiences of other countries. Making a brief presentation on the conceptions, which in terms of development banking remained in force in the American continent until the 1990s to subsequently present the current situation on this type of banking, it is intended to show in the first place the evolution on the subject of subsidies has been raised in Latin American economies (due to the fact that they present very similar socioeconomic characteristics, although differences in resources and technologies are recognized), in terms of their use as mechanisms that promote the development of this type of banking and therefore their impact on the real sector of the economy. Secondly, it is intended to address in a simple but clear way, the current situation of the main Latin American economies that presents a strong and profitable development bank.