Regulatory Alerts2018-12-04 | CD-SIBOIF-1087-4-DIC4-2018Norm on Interest Rate Risk Management
The Superintendent of Banks and Other Financial Institutions of Nicaragua issued Resolution No. CD-SIBOIF-1087-4-DIC4-2018 to establish mandatory guidelines for the prudent management of interest rate risk by deposit-taking financial institutions. The regulation defines risk management duties for Boards of Directors and Management, requiring the implementation of systems to identify, measure, monitor, and limit interest rate exposure through Financial Margin and Economic Value of Capital (VEC) analyses. Institutions must submit monthly measurement reports within twenty days of month-end and maintain capital levels commensurate with their risk profiles, with the norm becoming effective on January 1, 2019.
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