Reformism and war:

an evaluation of bank nationalization in El Salvador

Abstract

THE AUTHOR PRESENTS AN EVALUATION OF THE NATIONALIZATION OF THE BANKING SYSTEM ADOPTED BY THE GOVERNMENT OF EL SALVADOR IN MARCH 1980. THE EVALUATION EXAMINES THE CONSEQUENCES OF THE REFORM ON THE ORGANIZATION AND POLICIES OF THE COMMERCIAL BANKS, THE CENTRAL RESERVE BANK AND THE COUNTRY'S OFFICIAL MONETARY AUTHORITY (THE JUNTA MONETARIA). IT SHOWS THAT THE OBJECTIVES OF BANK NATIONALIZATION HAVE BEEN DISTORTED, WHICH IS DIRECTLY RELATED TO THE STATE OF CIVIL WAR IN THE COUNTRY.