Regulatory Alerts2023-12-14 | NRP-50Technical Standards for the Equity Fund Requirement of Reciprocal Guarantee Societies and Reinsurers of Reciprocal Guarantee Societies
The Technical Standards Committee of the Central Reserve Bank of El Salvador issued these norms to establish the calculation methodology for the equity fund requirements of Reciprocal Guarantee Societies and their reinsurers. The regulations mandate a minimum equity-to-weighted-assets ratio of 12 percent, defining specific components for primary and supplementary capital while assigning risk weights to various assets and contingencies. Compliance requires monthly reporting to the Financial System Superintendence, with immediate notification of any deficiencies, and supersedes previous regulations effective January 2, 2024.
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