Regulatory Alerts2024-01-01 | JPRF-F-2024-0129JPRF-F-2024-0129 — Reform to the Technical Equity Regulatory Framework
The Financial Policy and Regulation Board of Ecuador issued Resolution JPRF-F-2024-0129 to reform the calculation of technical equity for financial entities, aligning it with international standards to enhance system stability. The resolution updates risk-weighting factors for specific assets and investments, introduces new deductions for primary technical equity, and modifies the treatment of capital invested in subsidiaries and affiliates. These changes aim to ensure that financial institutions maintain solvency and transparency comparable to other jurisdictions while preserving the integrity of the national financial system.
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