Regulatory Alerts2024-01-01 | JPRF-F-2024-0105Resolution JPRF-F-2024-0105: Homologation of Provisioning Standards Between Popular and Solidarity Financial Sector and Public and Private Financial Sectors
The Financial Policy and Regulation Board of Ecuador issued Resolution JPRF-F-2024-0105 to eliminate regulatory arbitrage by harmonizing provisioning standards across the country's financial sectors. The resolution specifically repeals Article 9 of the Monetary, Financial, Securities, and Insurance Resolutions Codification, which previously mandated 100% provisions for usurious interest rates in the public and private banking sectors. This repeal ensures that the popular and solidarity financial sector is subject to the same regulatory framework as the public and private sectors, promoting consistency and stability within the national financial system.
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