Regulatory Alerts2024-01-01 | JPRF-F-2024-0128JPRF-F-2024-0128 — Requirement for Additional Counter-Cyclical Technical Equity
The Financial Policy and Regulation Board of Ecuador issued Resolution JPRF-F-2024-0128 to establish a counter-cyclical buffer requiring financial entities to maintain a minimum 6% ratio of primary technical equity to risk-weighted assets. The resolution introduces Chapter LXIV, which defines the methodology and activation process for this additional capital requirement based on macroeconomic and macrofinancial indicators. Supervision of compliance and quarterly monitoring of the conditions justifying the buffer are assigned to the Superintendencies of Banks and Popular and Solidarity Economy.
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