Basic principles for effective bank supervision are one of the most important recommendationsfor the sake of sensible regulation and surveillance. In this article weput forward a diagnosis of the supervisory and regulatory entities in El Salvadorand Honduras. All legal regulations related to their Financial System plus theirregulatory norms for the supervision of bank activities were examined. Likewise,the implementation of such basic principles and the level of compliance thereofare analyzed in order to point out and register the changes that both the financialmarkets and supervisory practices have undergone, in order to strengthen theirproper running in the countries under study.