Regulatory Alerts2024-10-31 | NRP-85Technical Standards to Authorize Operations with Related Entities
The Central Reserve Bank of El Salvador issued Technical Standards NRP-85 to regulate and authorize specific operations between Salvadoran banks and credit societies and foreign financial entities linked to their shareholders or corporate groups. The regulation mandates that such foreign entities must be subject to adequate supervision in their home jurisdiction and defines permitted transactions, including the sale of non-performing loan portfolios and the contracting of administration and collection services. These standards supersede previous regulations and establish the legal framework for supervising risks associated with related-party transactions to ensure the solvency and liquidity of the financial system.
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