El Salvador’s Legislative Assembly has approved comprehensive Investment Banking Law legislation establishing specialized financial institutions for high-net-worth and institutional clients.
The measure passed with 55 votes during the assembly’s 68th plenary session.
The law creates a regulatory framework for investment banks offering asset management, financial advisory, corporate transaction structuring, structured financing, and market analysis services.
These institutions must maintain a minimum share capital of $50 million and operate separately from commercial banks, per the announcement.
Investment banks can request authorization to become digital asset service providers, digital asset issuers, and Bitcoin service providers.
The framework permits bond issuance, loan granting, foreign currency transactions, and complementary services.
Client access is restricted to sophisticated investors defined as individuals or entities with extensive market experience, capacity to manage complex financial risks, and minimum $250,000 in liquid assets.
Qualifying assets include Bitcoin, treasury bonds, tokenized products, gold, or cash.
Deputy Dania González stated investment banking helps governments, companies, and institutions raise capital for major projects.
The legislation aims to attract international private capital, financial groups, and wealthy individuals to establish El Salvador as a regional operational base.
The Central Reserve Bank will regulate these entities, setting standards for capital, liquidity, risk management, and digital asset operations.
The Superintendency of the Financial System will supervise compliance, transparency, and investor protection.
The law enables investment banks to focus on infrastructure, energy, telecommunications, and urban development projects through complex financing schemes.
Entities can maintain assets and liabilities in foreign currencies and conduct foreign exchange operations.
Authorization applications must be submitted to the Financial System Superintendency, while the Central Reserve Bank establishes technical and legal requirements through its Standards Committee.
Approvals will be published in the Official Gazette and national newspapers.
The legislation represents El Salvador’s strategy to modernize its financial system and position itself as a specialized financial hub with international reputation and institutional confidence while accelerating commercial, industrial, and technological development.
