Regulatory Alerts2024-01-01 | JPRF-F-2024-0127JPRF-F-2024-0127 — Additional Technical Equity Requirement for Systemic Entities
The Financial Policy and Regulation Board of Ecuador issues Resolution JPRF-F-2024-0127 to establish a methodology for identifying public and private financial entities of systemic importance. The resolution mandates an additional primary technical equity requirement ranging from 1.00% to 3.50% of risk-weighted assets, depending on the entity's systemic importance bucket. This regulatory framework aims to enhance financial stability by addressing contagion risks and ensuring adequate capital buffers for systemically important financial institutions.
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