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 Nicaragua and
Guatemala. 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.