Regulatory Alerts2026-01-01 | JPRFM-2026-012-FResolution JPRFM-2026-012-F Approves Reforms to Chapter XXI "Categorization and Valuation of Adequate Guarantees"
The Financial and Monetary Policy Board (JPRFM) of Ecuador issued Resolution JPRFM-2026-012-F to amend the regulatory framework governing adequate guarantees under Article 210 of the Organic Code of Monetary and Financial Law. The resolution explicitly recognizes financial instruments issued by sovereign governments, central banks, and multilateral or supranational organizations as adequate collateral, provided they meet strict minimum credit rating requirements of AA- or equivalent from major international agencies. These reforms allow financial entities to apply a 20% exposure limit and specific risk weightings to these high-quality assets, thereby aligning national prudential standards with international risk management practices.
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