The Bridge Between Banks and Social Responsibility
Law No. 393 on Financial Services establishes that financial institutions must allocate a portion of their net profits generated each fiscal year to social purposes. This measure was regulated through Supreme Decree No. 5306, and on an annual basis these profits from the financial sector are channeled toward priority areas, resulting in the creation of mechanisms such as credit guarantee funds for productive loans, social interest housing loans, and seed capital programs, among others.
This policy is grounded in the Political Constitution of the State, which establishes that the criteria for regulating the financial system are equality of opportunity, solidarity, equitable distribution, and redistribution. These principles are complemented by the Financial Services Law, which stipulates that the financial system must fulfill a social function, contributing to the objectives of comprehensive development for Vivir Bien, the elimination of poverty, and the reduction of social and economic exclusion.
This approach contrasts with financial models in other countries, where social responsibility is promoted through tax incentives or voluntary programs. For example, in the United States, the Community Reinvestment Act requires banks to invest in low-income communities. In Europe, initiatives such as microcredit programs managed by cooperative banks also serve a social purpose, although they are usually promoted by the private sector. Meanwhile, in Latin America, countries such as Brazil and Colombia require financial institutions to allocate a percentage of their profits to social projects.
However, Bolivia stands out by incorporating this responsibility as a constitutional obligation, underscoring its importance as a state policy. This approach seeks to ensure that the financial system is not limited to pursuing profit-oriented objectives, but also plays an active role in financial inclusion, access to services for vulnerable sectors, and the promotion of productive activities, becoming a distinctive feature of the country at the international level.
According to the Financial System Supervisory Authority, as of November 2024, social interest housing loans granted to individuals without home ownership benefited more than 101,000 families, with a total amount of BOB 23.324 billion. On the other hand, loans directed to the productive sector reached BOB 104.383 billion, mainly benefiting sectors such as manufacturing, agriculture, livestock, and construction.
The social function of the financial system in Bolivia plays a key role in balancing banking profitability with collective well-being. Channeling 6% of profits toward social purposes not only helps improve the quality of life of thousands of citizens and reduce inequalities, but also reaffirms the financial system’s commitment to the country’s sustainable development, fostering inclusive economic growth and consolidating Bolivia as a reference model in the integration of financial policies with comprehensive development objectives.
Author: Walter Marañon Quiñones
