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Last Updated on February 14, 2025

Bolivia’s banking regulations function very similarly to those in other countries. There’s one primary and official regulatory entity for banks, the ASFI, along with two other secondary regulators. Together, these three entities govern the conduct and performance of banks by issuing policies and regulations that banks must adhere to. Several laws and regulations also dictate how these banks should provide services to their clients and operate.

The primary official bank regulator in Bolivia is the ASFI. This government entity is responsible for ensuring that Bolivian banks provide quality and fair services to their clients and operate legally and effectively. The other two regulators are the BCB (Central Bank of Bolivia) and Asoban (Bank Association).

As Bolivian citizens and experts in business matters in our country, we’ll provide you with comprehensive details about the main regulatory entities of the Bolivian banking system and how the banking system functions. You’ll also learn about the key laws and regulations that govern the conduct of these financial institutions.

Principal Bank Regulators in Bolivia

There are three primary bank regulators in Bolivia:

1. ASFI (by far the most important)
2. Asoban
3. Central Bank of Bolivia (BCB)

1) ASFI

The ASFI, which stands for the “Financial System Supervisory Authority” of Bolivia (Autoridad de Supervisión del Sistema Financiero), is the official regulatory institution for banks in Bolivia. It’s responsible for overseeing and monitoring *how Bolivian banks deliver services to their clients*.

This entity is a government institution established on August 21, 2013, through Bolivian Law No. 393 (translated). It is *legally responsible for regulating both public and private banks in Bolivia*, ensuring they comply with all national laws and consumer needs when serving clients.

This regulatory entity is responsible for:

• Ensuring a high quality of banking services provided in Bolivia.
• Protecting clients’ funds from potential threats and scams.
• Ensuring that banks offer fair banking services and interest rates, without any form of discrimination.
• Ensuring that banks comply with the laws and policies established by the Bolivian government.
• Listening to bank clients and addressing their complaints and needs to improve the banking system.
• Ensuring transparency of information related to banks, their services, fees, interest rates, and publicly available banking information.

How Does the ASFI Operate?

Every financial institution and bank operating in Bolivia *must be legally approved by this institution*. If a financial entity is not approved by the ASFI, it’s considered an illegal business, and its owners are subject to financial and, in some cases, criminal penalties.

The ASFI continuously regulates the conduct of banks and similar institutions in Bolivia by issuing regulations and policies, conducting audits, monitoring bank performance using rating systems like the CAMELS rating, addressing client complaints, assessing the results of banking operations through financial studies of the market and the sector, and so on.

When the Bolivian government approves a law that affects banks, it’s almost always the ASFI’s responsibility to implement and enforce this law.

2) Central Bank of Bolivia (BCB)

Another important regulator is the BCB. As in most countries with modern financial systems, there’s always a central bank. In Bolivia, this is the BCB (Banco Central de Bolivia), *and it’s responsible for financial regulations and the financial stability* of banks and their operations within the market.

Regarding Bolivian banks, this entity is responsible for:

• Establishing currency exchange policies.
• Determining the percentage of required legal cash reserves for banks.
• Monitoring and, in some cases, controlling banks’ active and passive interest rates.
• Implementing monetary policies and issuing bonds to either the general public or banks.
• Issuing national currency in cash (Bolivianos – Bs.).
• Regulating the country’s money transfer system, including transfers between banks and client transfers.

How Does the BCB (Central Bank) Work?

This entity is headquartered in downtown La Paz, very close to the government’s central offices. It typically receives new government financial policies and laws *and implements or operationalizes them*, but in a much more limited capacity than the ASFI. It usually focuses on monetary or highly technical regulations, such as legal cash reserves, bank interest rates, and the issuance of cash into the financial system.

This entity is also responsible for developing monetary and currency exchange policies. To achieve this, it has its own specialists and staff who continuously conduct economic and financial studies of the Bolivian situation. Based on this information, the BCB can control and implement these policies and regulations.

3) Asoban

Another regulator is Asoban, which is the “Association of Private Banks of Bolivia” (Asociación Bancaria). It *functions like a trade association for all major private banks* in the country. The purpose of this entity is to represent private banks and their interests before government regulatory bodies and other stakeholders.

This institution currently has 10 members, which are the largest banks operating in Bolivia. It operates by representing all the banking interests and objectives of its members before other institutions like the ASFI, the Central Bank of Bolivia (BCB), and the Bolivian government.

It also establishes benchmarks for financial services, implements best practices, designs operational and cooperative frameworks, provides information about the sector, makes recommendations, and offers services, among other similar tasks, to its members.

How Does Asoban Work?

Asoban typically operates by holding frequent meetings with its members, addressing their goals and challenges, adjusting their objectives, representing their needs to other institutions, and so on.

In these meetings, where all members must be present, they collectively decide how to act in response to potential challenges or opportunities presented by the environment to the member banks.

Additionally, this association continuously seeks new best practices, improved policies, enhanced performance, and profitability in the banking operations of its private members. In summary, this association acts as a representative body for its member banks.

The Functioning of the Banking System in Bolivia

The banking system in Bolivia operates as follows:

• 3 government regulatory entities
  • The ASFI (regulates banks)
  • The Central Bank of Bolivia (BCB)
  • The APS (regulates only the pension system)
• There are 5 types of banks in the country
  • 13 multipurpose banks
  • 2 PYME banks (focused on small and medium-sized enterprises)
  • 28 Savings and Credit Cooperatives
  • 7 Housing Financial Entities
  • 2 state-owned banks
  • 7 Financial Development Institutions (IFDs)
• 1 private bank association
  • Asoban

The multipurpose banks are general, large-scale banks operating in Bolivia. They offer a wide range of services, including approving loans, facilitating money transfers, creating checking and savings accounts or fixed-term deposits, issuing insurance, and so on. These banks are:

1. Union Bank (Banco Unión)
2. Mercantil Santa Cruz Bank (Banco Mercantil Santa Cruz)
3. BNB Bank (Banco Nacional de Bolivia BNB)
4. Credit Bank (Banco de Crédito BCP)
5. Bisa Bank (Banco Bisa)
6. Fie Bank (Banco Fie)
7. Ganadero Bank (Banco Ganadero)
8. Economic Bank (Banco Económico)
9. BancoSol Bank (Banco BancoSol)
10. Prodem Bank (Banco Prodem)
11. Fortaleza Bank (Banco Fortaleza)
12. Bank of the Argentine Nation (Banco de la Nación Argentina)

We have a comprehensive guide on Bolivia’s largest and most important banks, with details about their services, operations, total assets, earnings, and more, available here: The largest banks in Bolivia: A complete overview.

Another category of much smaller financial institutions that accept deposits from the general public and provide loans, primarily to individuals but also to businesses, are the Savings and Credit Cooperatives, of which there are currently 28 operating across Bolivia.

In Bolivia, there are also two PYME banks, which focus on launching and supporting new businesses and small companies. Additionally, there are seven Housing Financial Entities, specifically aimed at providing loans to individuals seeking to purchase a home, offering them more favorable interest rates.

Furthermore, there are two state-owned banks: Union Bank and the Productive Development Bank, with Union Bank being one of the largest in the country. Finally, there are also institutions focused on supporting social projects and non-profit organizations, known as Financial Development Institutions or IFDs.

Laws and Regulations Governing Banks in Bolivia

The Financial Services Law, Law No. 393 of Bolivia

Law No. 393 (translated) established the ASFI entity and regulates all general aspects of Bolivia’s financial system, including the functions of the banking system, the government’s role in this system, and the protection of financial clients, among other aspects.

The Capital Market Law, Law No. 1834 of Bolivia

Law No. 1834 (translated) establishes the most important and general regulations concerning the operation of Bolivian capital and stock markets, how companies and businesses can access these markets, how banks interact with the country’s capital market, and other related areas.

The Central Bank Law, Law No. 1670 of Bolivia

Law No. 1670 (translated) established the Central Bank of Bolivia (BCB). It also governs the operation of this institution, its functions, capabilities, relationships with stakeholders (including other banks and the government), and its organizational structure, among other aspects.

The Civil Code of Bolivia

The Civil Code of Bolivia contains the main regulations for many financial operations in Bolivia, such as lending, contract creation, fair interest rates, foreclosure procedures, and similar activities, to which banks must adhere in their regulations and conduct as financial institutions.

Conclusions:

In this article about bank regulators in Bolivia, you’ve learned that there are three regulatory entities in the country: 1) the ASFI, which is the official regulator of the banking system and is overseen by the Bolivian government; 2) the Central Bank of Bolivia (BCB), which is responsible for regulating monetary and highly technical aspects of the banking system; and 3) Asoban, which is the association of Bolivian private banks and functions as a representative body for them.

You’ve also gained an understanding of how the Bolivian banking system operates, consisting of 13 multipurpose banks, 2 PYME banks, 28 Savings and Credit Cooperatives, 7 Housing Financial Entities, 7 Financial Development Institutions, and 2 state-owned banks. Additionally, this system includes the ASFI, the BCB, and the APS, the latter being responsible for the pension system.

Finally, you’ve seen that four main laws regulate Bolivia’s financial and banking system: Law No. 393 (Financial Services Law), Law No. 1834 (Capital Market Law), Law No. 1670 (Central Bank Law), and the Civil Code of Bolivia.

We hope this information has been helpful. If you’d like to learn more about the multipurpose banks available in Bolivia, including details about their contact information, services offered, and other aspects, please visit our dedicated guide: Banks in Bolivia: A complete list and all you need to know.

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