Regulatory Alerts2024-06-17
Added · Updated
Banks - Information on Recovery Plans - Article 582.8 of the Compilation of Regulations and Control of the Financial System
The Financial Regulatory Superintendent incorporated Article 582.8 into the Compilation of Regulations and Control of the Financial System, requiring banks subject to systemic risk capital requirements to submit information on their recovery plans. These banks must report on processes to restore financial solidity and viability under severe stress, with data referring to December 31 and due by April 30 each year. Plans must be updated and reported within five business days following approval if material changes occur in the entity's structure, strategy, operations, or aggregate risk exposure.
Montevideo, June 17, 2024 Ref: BANKS - Information on Recovery Plans - Article 582.8 of the Compilation of Regulations and Control of the Financial System
The market is informed that the Financial Services Superintendence adopted the following resolution on June 6, 2024:
- INCORPORATE into Chapter XVI – Other Information, of Title II – Information Regime, of Part I – Financial Intermediation Institutions, of Book VI – Information and Documentation of the Compilation of Regulations and Control of the Financial System the following article:
ARTICLE 582.8 (INFORMATION ON RECOVERY PLANS).
Banks subject to the capital requirement for systemic risk referred to in Article 173 shall present information regarding the recovery process that identifies alternatives to restore financial solidity and viability when the company is under severe stress situations, in accordance with the instructions contained in the Guide established by the Financial Services Superintendence for such purposes. The information shall refer to December 31 and must be submitted to the aforementioned Superintendence before April 30 of each year.
The plan must be updated in the event of occurrences that materially change the entity's structure, strategy, operations, or aggregate risk exposure. In such case, the new information must be submitted to the Superintendence within five business days following the approval of the new plan.
PATRICIA TUDISCO Financial Regulation Superintendent 2023-50-1-02147 Diagonal Fabini 777 - C.P. 11100 - Tel.: (598 2) 1967 - Montevideo, Uruguay - www.bcu.gub.uy CIRCULAR NO. 2458
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