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 El Salvador
and Honduras. 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 countries under study.