Resolution 024/2009

BOARD RESOLUTION NO. 024/2009
SUBJECT: FINANCIAL ENTITIES MANAGEMENT AND ECONOMIC POLICY ADVISORY – APPROVE MODIFICATION TO THE LEGAL RESERVE REGULATION.

VIEWED:
The Law No. 1670 of October 31, 1995.
The Statute of the Central Bank of Bolivia of October 21, 2005.
Law No. 3892 of June 18, 2008, modifying Law No. 1488 on Banks and Financial Entities of April 16, 1993.
Superintendency Resolution No. 034/2008 dated March 10, 2008, issued by the Superintendency of Banks and Financial Entities.
Board Resolution No. 048/2005 of April 20, 2005, which approves the Legal Reserve Regulation, modified by Board Resolution No. 118/2006 of December 12, 2006, Board Resolution No. 106/2007 of August 21, 2007, Board Resolution No. 156/2007 of December 18, 2007, and Board Resolution No. 143 of December 9, 2008, as well as by the modification made by Presidential Decision No. 01/2008 of January 4, 2008. The Joint Report of the Financial Entities Management and the Main Economic Policy Advisory GEF – SANA No. 123/2009 / APEC-INEP No. 09/2009 of March 11, 2009. The Report of the Legal Affairs Management SANO No. 067/2009 of March 12, 2009.

CONSIDERING:
That Law No. 1670 in its article 7 provides that the Issuing Entity may establish mandatory legal reserves for financial intermediation entities and, for this purpose, shall determine their composition, amount, calculation method, characteristics, and remuneration.

That in its article 37, the aforementioned legal norm establishes that the BCB is the custodian of the liquid reserves intended to cover said reserve and may delegate the custody of these deposits according to the specific regulation.

That the BCB Statute in article 11 numeral 7) states that it is the faculty of the Board to establish by absolute majority of votes, mandatory legal reserves for Financial Intermediation Entities and approve their composition, amount, calculation, characteristics, forms of administration, custody, and remuneration in accordance with the Regulation.

That the Legal Reserve Regulation and all its modifications have the object of establishing the technical and operational conditions, mandatory for financial entities that are duly authorized for their operation by the Superintendency of Banks and Financial Entities, regarding the constitution and form of administration of the legal reserve.

That Law No. 3892 provides for the incorporation into the supervision scope of the Superintendency of Banks and Financial Entities, of Closed Savings and Credit Cooperatives of a Communal nature under the denomination of Societal Savings and Credit Cooperatives.

That through Superintendency Resolution No. 034/2008, the Superintendency of Banks and Financial Entities incorporates into its supervision scope Development Financial Institutions.

That the Financial Entities Management and the Economic Policy Advisory through Report GEF – SANA No. 123/2009 / APEC-INEP No. 09/2009, recommend the approval of the modification to the Legal Reserve Regulation, in order to establish a base date for the calculation of the additional legal reserve for financial entities that obtain their operating license after September 30, 2008.

That the Legal Affairs Management through Report SANO No. 067/2009, states that there is no legal impediment for the Board of the Issuing Entity, in the exercise of its faculties, to consider the approval of the modifications to the Legal Reserve Regulation.

That in merit of the attributes conferred in subsections a), i) and o) of article 54 of Law No. 1670, the Board of the BCB is authorized to approve the modifications to the new Legal Reserve Regulation.

THEREFORE,
THE BOARD OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:

Article 1.- Approve the partial modification to article 10 (Base Date) of the Legal Reserve Regulation as follows:

SAYS:
Article 10 (Base Date).- The date mentioned in article 2 of this Regulation and used for the application of the additional reserve established in article 9 of this regulation is September 30, 2008.

SHOULD SAY:
“Article 10 (Base Date).- The date mentioned in article 2 of this Regulation and used for the application of the additional reserve established in article 9 of this regulation is September 30, 2008.
For financial entities that obtain their operating license from the Superintendency of Banks and Financial Entities after the date mentioned in the previous paragraph, the base date for the calculation of the additional reserve shall correspond to the last day of the month in which the entity obtained the said license.”

Article 2.- The modification to the Legal Reserve Regulation will enter into force from the date of this resolution.

Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, March 17, 2009

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Gabriel Loza Tellería

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Gustavo Blacutt Alcalá Hugo Dorado Araníbar

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Rolando Marín Ibáñez Ernesto Yáñez Aguilar Rafael Boyán Téllez