COLOMBIAN

Financial System

FINANCIAL STRUCTURE Financial entities

In Colombia, the financial system
is made up of institutions,
financial assets, and the financial
market.
• Financial institutions
They are intermediaries between agents
who have available resources and those
who need them.
• Financial assets
They are the instruments used in the
financial system to mobilize these
resources.
• Financial market
Field where all transactions of these
instruments or financial assets are
carried out and prices are set.
It includes the entities that are called, credit establishments, financial services
companies, insurance companies, and insurance and reinsurance intermediaries.
CREDIT ESTABLISHMENTS. They are those institutions whose main function is
to attract public resources in legal currency, to place them again through loans,
discounts, advances or other active credit operations. Among which we find:
Banking Establishments, Financial Corporations, Finance Companies, Financial
Cooperatives.
COMPANIES OF FINANCIAL SERVICES: are those whose function is to carry
out the operations provided for in the legal regime that regulates their activity,
although they capture resources from public savings, due to the nature of their
activity they are considered as institutions that provide complementary and related
services with the financial activity, among these we find: Trust Companies, General
Deposit Warehouses, Pension and Severance Management Companies and
Capitalization Companies.
INSURANCE ENTITIES: Their objective is to carry out insurance operations,
under their specifications. The insurance entities are: Insurance Companies,
Reinsurance Companies and Insurance Cooperatives.
INSURANCE AND REINSURANCE INTERMEDIARIES: in these entities we
find Insurance Brokers, Insurance Agencies, Insurance Agents and Reinsurance

Financial entities in Colombia are regulated by four government entities, which are:
• Bank of the Republic
Maintains price stability through monetary policy, also defines the rules related to the foreign
exchange market.
• Banking Superintendency
It supervises financial activity, ensures public confidence in the system and ensures that the
entities that make up the financial system have the economic strength and liquidity necessary to
meet their obligations.
• Ministry of Finance
Defines, coordinates, regulates and executes the economic policy of the country, guarantees the
effective administration of public finances and promotes the economic and social development of
the country.
• Financial guarantee fund (Fogafin)
It is in charge of insuring deposits and acts as an independent agent in the recovery or liquidation
of institutions.

WEBGRAFIA:
Elaborado por:
https://www.eltiempo.com/archivo
JEISON FABIAN ARDILA RUEDA
/documento/MAM-1587971
ID: 750379