Regulatory Alerts2025-01-01 | JPRF-F-2025-0141JPRF-F-2025-0141 — Reforms to the Methodology for Identifying Systemically Important Financial Entities in the Popular and Solidarity Sector and Establishment of Additional Primary Technical Equity Requirements for Systemic Risk
The Financial Policy and Regulation Board of Ecuador issued Resolution JPRF-F-2025-0141 to establish a new methodology for identifying systemically important entities within the popular and solidarity financial sector. This regulation mandates the calculation of a Systemic Importance Index (SII) based on size, interconnection, substitutability, and complexity indicators to determine which institutions face additional primary technical equity requirements. Entities exceeding a threshold of 400 basis points in the SII are classified as systemically important and assigned to specific risk buckets that dictate their capital adequacy obligations.
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