If not much international attention has been paid to Paraguay's economy in recent times, even less is known about its financial and banking systems. More than two-thirds of the country's local market is served by banks, while co-operatives have a 15% market share. Financieras (institutions that can issue loans but are not authorised to hold savings accounts) and casas de creditos and casas de empeños (pawn brokers) share the rest.
Paraguay's stock exchange, Bolsa de Valores y Productos de Asunción, was created in 1977 but has limited activity. Most local businesses are too small to float and, at best, resort to private placements for financing. As is to be expected, multinationals present in the country access the international capital markets to finance their local activities. On the investors' side, it is mainly banks that buy government bonds and a development of the country's pension fund system is urgently required.
