Regulatory Alerts2019-12-04 | DOF 5580894Added
Amending Circular 16/19 of the Single Circular on Insurance and Sureties
The National Insurance and Sureties Commission amends Annex 6.4.11 of the Single Circular on Insurance and Sureties to publish the Basic Adjustment Factor for Credit Risk (FBA) and the Credit Risk Adjustment Factor (FA) for the third quarter of 2019. Authorized institutions offering financial guarantee insurance must apply these specific factors to determine the capital requirement for issued guarantees. The circular establishes a uniform FBA of 2.3462 for Government Bonds and assigns FA values ranging from 2.3462 to 3.5340 to asset-backed and guaranteed securities based on their credit ratings and collateral status. This modification enters into force the day following its publication in the Official Gazette of the Federation.