Regulatory Alerts2022-01-01 | JPRF-F-2022-046Resolution No. JPRF-F-2022-046 Reforming the Solvency, Technical Equity, and Risk-Weighted Assets and Contingencies Standard for Savings and Credit Cooperatives, Central Boxes, and Mutual Housing Savings and Credit Associations
The Financial Policy and Regulation Board (JPRF) issued Resolution No. JPRF-F-2022-046 to reform the solvency and technical equity standards for the Popular and Solidarity Financial Sector, specifically targeting savings and credit cooperatives and housing associations. The resolution aligns Ecuadorian regulations with the Organic Monetary and Financial Code (COMYF) and international best practices by adjusting solvency calculations and harmonizing risk-weighting methods with the public and private financial sectors. Key changes include establishing a minimum technical equity ratio of 9% against risk-weighted assets and 4% against total assets, while updating the aggregation methods for primary and secondary technical equity accounts.
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