Regulatory Alerts1992-06-17
Official Gazette of the Republic – Law on Financial Institutions
The Central Bank of the Republic issued this Law on Financial Institutions to establish a comprehensive regulatory framework for all financial entities operating within its jurisdiction. The legislation mandates licensing, capital adequacy, governance standards, and operational compliance for both state-owned and private financial institutions. It further empowers the Central Bank to supervise, inspect, and enforce penalties against non-compliant entities while defining their legal status, merger procedures, and financial reporting obligations.
Official Gazette of the Republic – Law on Financial Institutions. Number 16-3 of August 1982, as amended by Articles 31 to 50.
CHAPTER I: Object and Scope of Application Article 1: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 2: The financial activity of institutions is exercised between the State and private entities, subject to the provisions of this law. Financial institutions are divided into those whose capital is wholly or partially State-owned, and others. Their operations are governed by this law, subject to the specific provisions of their respective statutes.
CHAPTER II: Financial Institutions Article 3: The Central Bank defines financial institutions and their categories. It may grant licenses to entities meeting the requirements, subject to prior authorization from the Central Bank Council. Article 4: Institutions that do not meet the requirements of Article 30, paragraph 1, are subject to specific regulations. Article 5: The Central Bank may authorize the creation of financial institutions, subject to compliance with legal requirements. Article 6: The Central Bank may authorize the merger or incorporation of financial institutions, subject to compliance with legal requirements. Article 7: The Central Bank may authorize the transformation of financial institutions into other types, subject to compliance with legal requirements. Article 8: The Central Bank may authorize the suspension or termination of financial institutions, subject to compliance with legal requirements.
CHAPTER III: Organization and Management Article 9: The management of financial institutions is exercised by a Board of Directors, subject to the provisions of this law. Article 10: The Board of Directors is composed of members appointed by the General Meeting, subject to the provisions of this law. Article 11: The Board of Directors is responsible for the management and administration of financial institutions, subject to the provisions of this law. Article 12: The Board of Directors is responsible for the preparation and approval of financial statements, subject to the provisions of this law. Article 13: The Board of Directors is responsible for the appointment and dismissal of officers, subject to the provisions of this law. Article 14: The Board of Directors is responsible for the representation and legal action of financial institutions, subject to the provisions of this law. Article 15: The Board of Directors is responsible for the supervision and control of financial institutions, subject to the provisions of this law.
CHAPTER IV: Operational Rules Article 16: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 17: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 18: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 19: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 20: Financial institutions are subject to the provisions of this law, as well as those specific to their nature.
CHAPTER V: Financial Statements and Accounts Article 21: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 22: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 23: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 24: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 25: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 26: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 27: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 28: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 29: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 30: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 31: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 32: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 33: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 34: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 35: Financial institutions are subject to the provisions of this law, as well as those specific to their nature.
CHAPTER VI: Supervision by the Central Bank Article 36: The Central Bank exercises supervision over financial institutions, subject to the provisions of this law. Article 37: The Central Bank exercises supervision over financial institutions, subject to the provisions of this law. Article 38: The Central Bank exercises supervision over financial institutions, subject to the provisions of this law. Article 39: The Central Bank exercises supervision over financial institutions, subject to the provisions of this law. Article 40: The Central Bank exercises supervision over financial institutions, subject to the provisions of this law. Article 41: The Central Bank exercises supervision over financial institutions, subject to the provisions of this law. Article 42: The Central Bank exercises supervision over financial institutions, subject to the provisions of this law.
CHAPTER VII: Penalties Article 43: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 44: Financial institutions are subject to the provisions of this law, as well as those specific to their nature. Article 45: Financial institutions are subject to the provisions of this law, as well as those specific to their nature.
CHAPTER VIII: Financial Institutions and the State Article 46: The State exercises supervision over financial institutions, subject to the provisions of this law. Article 47: The State exercises supervision over financial institutions, subject to the provisions of this law. Article 48: The State exercises supervision over financial institutions, subject to the provisions of this law. Article 49: The State exercises supervision over financial institutions, subject to the provisions of this law. Article 50: The State exercises supervision over financial institutions, subject to the provisions of this law.
CHAPTER IX: Visitation/Inspection Article 51: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 52: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 53: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 54: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 55: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 56: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 57: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 58: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 59: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 60: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 61: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 62: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 63: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 64: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law. Article 65: The Central Bank exercises visitation over financial institutions, subject to the provisions of this law.