Regulatory Alerts2023-11-28 | NRP-44Technical Standards for the Application of the Capital Requirement for Financial Entities
The Norms Committee of the Central Reserve Bank of El Salvador issued these Technical Standards to establish the calculation methods and minimum capital requirements for financial entities, including banks, cooperatives, and savings and credit societies. The regulations mandate a minimum capital-to-weighted-assets ratio of 12%, with a transitional 14.5% requirement for new entities, while defining specific risk weightings for various assets and contingent rights. Compliance is enforced through monthly and weekly reporting to the Superintendency, with specific provisions for capital composition, additional requirements for foreign exposure, and penalties for non-compliance.
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