Regulatory Alerts2018-01-17
Agreement No. 11 (2017): Guidelines for Operations with Financial Derivative Instruments
The Superintendency of Banks of Panama issued Agreement No. 011-2017 to establish prudential guidelines for banks conducting operations with financial derivative instruments and structured products. The regulation mandates strict corporate governance responsibilities for the Board of Directors and Senior Management, requiring clear risk management policies, organizational structures, and independent internal controls. It further defines key derivative concepts, outlines specific risk types, and sets minimum technical and operational requirements for the valuation, measurement, and reporting of these financial instruments.
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