Basic principles for effective bank supervision are one of the most important recommendations
for the sake of sensible regulation and surveillance. In this article we
put forward a diagnosis of the supervisory and regulatory entities in Bolivia. All
legal regulations related to their Financial System plus their regulatory norms for
the supervision of bank activities were examined. Likewise, the implementation of
such basic principles and the level of compliance thereof are analyzed in order to
point out and register the changes that both the financial markets and supervisory
practices have undergone, in order to strengthen their proper running in the country
under study.