On January 5, 1885, the creation of Banco Particular del Salvador, the second financial institution in the country, was authorized. It was founded by José Mauricio Duke and Francisco Camacho. This bank emerged in a period of political instability and unfavorable economic conditions, with armed conflicts and problems in public finances that slowed economic progress.
The Banco Particular contract was structured in a similar way to Banco Internacional del Salvador, with a 25-year concession and a capital of 400,000 pesos. Its headquarters were established in San Salvador, with the possibility of moving, creating branches or merging with other banking institutions. The bank was authorized to carry out normal banking operations and received tax exemptions similar to those of other contracts.
The Salvadoran government allowed Banco Particular to issue banknotes payable to the bearer, but it had to maintain a cash backing of at least 40% of the issue in circulation, guaranteeing the return of money deposited by its clients. To eliminate the issuing monopoly previously granted to Banco Internacional, it was established that Banco Particular had to obtain permission for its banknotes to be accepted at par for the payment of taxes.
Banco Particular focused its activities on cities with greater agricultural and export activity, such as the production of coffee, sugar and other products, as well as in areas with semi-industrial activity. Financial activity was oriented towards the creation of agricultural investment opportunities and the purchase of inputs and technologies to improve production.
After six years of operation, on December 12, 1891, Banco Particular del Salvador changed its name to Banco Salvadoreño, continuing its legacy in the country's financial system.
