Regulatory Alerts2024-06-05 | NRP-62Technical Standards for the Application of the Capital Requirement to Financial Conglomerates
The Central Reserve Bank of El Salvador issued Technical Standards NRP-62 to establish the calculation methodology for the consolidated capital requirement of financial conglomerates. The regulation mandates that controlling entities calculate their capital position at quarterly and annual intervals using specific formulas for primary and supplementary capital, while requiring the deduction of inter-company holdings to prevent capital pyramiding. Compliance is enforced through mandatory reporting to the Superintendency of the Financial System, with non-compliance subject to sanctions under the Financial System Supervision and Regulation Law.
Share