Regulatory Alerts2024-08-15 | NRP-75Technical Standards on the Granting of Credits to Related Parties of a Cooperative Bank
The Standards Committee of the Central Reserve Bank of El Salvador issued Technical Standards NRP-75 to regulate credit operations granted to related parties of cooperative banks and their federations. The regulations establish strict limits, capping total credit exposure to related individuals at 5% and to related legal entities at 10% of the cooperative's equity fund, while mandating detailed reporting and conflict-of-interest disclosures. These rules supersede previous norms and aim to ensure prudent risk management and transparency in the financial system.
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