Growth of Savings and Credit Cooperatives Compared to Commercial Banks in El Salvador

Abstract

Cooperativism in developing countries, as in most Latin American nations, is a very important tool for promoting the social and economic inclusion of people who face difficulties in accessing many of the benefits of market economies, such as savings services, credit opportunities, and the possibility of becoming shareholders in a company.

In El Salvador, this social instrument has been widely utilized, and savings and credit cooperatives have become an important component of the national economy, serving as an alternative to the services offered by commercial banks.

For this reason, it is highly valuable to understand the development of these cooperatives within the country in order to raise awareness of their significance in Salvadoran society and encourage greater governmental support for such associations.