WHAT IS FINANCIAL INTERMEDIATION IN BOLIVIA?

CLASSIFICATION OF FINANCIAL OPERATIONS

Financial operations are classified into three main categories: passive, active, and contingent.

PASSIVE OPERATIONS: FUND COLLECTION

These are the operations through which financial entities obtain the funds necessary to carry out their activities. They include:

• Receiving deposits in savings, current, demand, or term accounts
• Issuing certificates, negotiable or non-negotiable
• Issuing shares to increase capital
• Issuing mortgage bonds and debt securities
• Contracting subordinated obligations
• Obtaining loans from the Central Bank and national or foreign financial entities
• Issuing traveler’s checks and entering into foreign exchange futures contracts

ACTIVE OPERATIONS: FUND ALLOCATION

These operations involve using the collected funds and the entity’s own capital in activities that generate returns. They include:

Granting loans and credits of various terms and types

• Discounting and trading securities
• Opening and negotiating letters of credit
• Buying and selling commercial papers
• Currency exchange operations
• Financial leasing, factoring, and derivatives
• Channeling funds to expand productive portfolios or liquidity

CONTINGENT OPERATIONS AND SERVICES

This group includes commitments and services that do not necessarily involve an immediate cash outflow, but do involve assuming responsibilities or providing financial facilities. Examples include:

• Guarantees, sureties, and first-demand bonds
• Collection and payment of bills of exchange
• Domestic and international transfers
• Fiduciary and trust services
• Operation of credit cards and traveler’s checks
• Securitizations and acting as financial agent for foreign operations
• Mobile services and digital banking with security standards

REGULATION AND AUTHORIZATION OF NEW OPERATIONS

Current regulations allow financial entities to request authorization for operations not initially contemplated and empower ASFI to approve them generally when needed. This enables the financial system to adapt to technological innovations and emerging market needs, while maintaining safeguards to ensure the integrity, confidentiality, and authentication of transactions.

CONCLUSION

In summary, financial intermediation is a vital component of economic development, channeling savings toward productive investment in a regulated and secure manner. Understanding its categories and mechanisms enables users and businesses to engage more knowledgeably with the financial system and responsibly leverage its opportunities.