Regulatory Alerts2018-02-07
Agreement No. 004-2018 Modifying Article 35 of Agreement No. 002-2018 on Liquidity Risk Management and Short-Term Liquidity Coverage Ratio
The Banking Superintendence of Panama issued Agreement No. 004-2018 to amend Article 35 of Agreement No. 002-2018 regarding liquidity risk management and the short-term Liquidity Coverage Ratio (LCR). The amendment introduces a specific numerical item to the definition of total cash inflows, detailing the inclusion of various secured credit operations, derivatives, and deposits from local and foreign financial entities based on their credit ratings. This regulatory change aims to refine the calculation of the LCR to ensure banks maintain adequate liquidity buffers, with the agreement entering into force on July 1, 2018.
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