Regulatory Alerts2019-05-07 | CD-SIBOIF-1111-1-MAY7-2019Temporary Standard for the Deferral of Credit Portfolio Provisions and for the Treatment of Assets Received in Credit Recovery
The Superintendence of Banks and Other Financial Institutions (SIBOIF) issued Resolution No. CD-SIBOIF-1111-1-MAY7-2019 to temporarily allow financial institutions to defer additional credit provisions for specific loan categories classified as 'C' or 'D' in May 2019, provided they were previously 'A' or 'B'. The regulation imposes strict conditions on this deferral, including a maximum two-year period, a cap of 5% on deferred provisions relative to gross credit portfolio, and a prohibition on cash dividend distributions during the deferral period. Additionally, it establishes temporary suspensions for property appraisals and mandates minimum provision percentages for real estate assets reclassified from IFRS 5 to credit recovery accounts.
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