Regulatory Alerts2019-08-27 | CD-SIBOIF-1127-1-AGOST27-2019Norm on Reform to Article 51 of the Credit Risk Management Standard
The Board of Directors of the Superintendence of Banks and Other Financial Institutions issued Resolution No. CD-SIBOIF-1127-1-AGOST27-2019 to amend Article 51 of the Credit Risk Management Standard. The reform grants the Superintendent authority to grant specific exceptions to the norm, authorize the gradual establishment of provisions, and modify information requirements in the annexes as necessary. This resolution entered into force upon notification, with subsequent publication in the Official Gazette.
Page 1 of 2 Resolution No. CD-SIBOIF-1127-1-AGOST27-2019 Dated August 27, 2019
NORM ON REFORM TO ARTICLE 51 OF THE CREDIT RISK MANAGEMENT STANDARD
The Board of Directors of the Superintendence of Banks and Other Financial Institutions,
CONSIDERING
I
That on August 20, 2008, the Norm on Credit Risk Management was approved, contained in Resolution No. CD-SIBOIF-547-1-AGOST20-2008, published in La Gaceta, Official Gazette No. 176 and 178, on September 11 and 17, 2008, which aims to establish minimum guidelines to be followed by financial institutions for the evaluation and classification of risk assets according to the quality of their debtors, among other aspects oriented toward managing credit risk.
II
That based on the authority granted by Article 3, items 3 and 13, and Article 10, item 7), of Law 316, Law of the Superintendence of Banks and Other Financial Institutions, and its reforms; contained in Law No. 974, Law of the Nicaraguan Legal Digest of the Banking and Finance Sector, published in La Gaceta, Official Gazette No. 164, on August 27, 2018, and its reforms.
In exercise of its powers,
HAS ISSUED
The following,
CD-SIBOIF-1127-1-AGOST27-2019
NORM ON REFORM TO ARTICLE 51 OF THE CREDIT RISK MANAGEMENT STANDARD
FIRST: Article 51 of the Norm on Credit Risk Management, contained in Resolution No. CD-SIBOIF-547-1-AGOST20-2008, of August 20, 2008, published in La Gaceta, Official Gazette No. 176 and 178, on September 11 and 17, 2008, is hereby amended, which shall read as follows:
Art. 51 Powers.- The Superintendent is authorized to do the following:
a) In special circumstances, financial institutions may request specific exceptions from the Superintendent to the application of this norm. The Superintendent shall rule on this matter through a reasoned resolution, informing the Board of Directors of the Superintendence of such exceptions.
b) Authorize the gradual establishment of provisions, both those determined by the financial institution itself and those instructed by the Superintendent, resulting from the application of any of the provisions established in this norm. The Superintendent shall rule on this matter through a reasoned resolution, informing the Board of Directors of the Superintendence of the authorization of the gradual establishment, if applicable.
c) Modify the information requested in Annexes 1, 2-A, and 2-B of this norm, to the extent that its application so requires.
SECOND: This norm shall enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Gazette. (F) Ovidio Reyes R. (F) Illegible (Luis Ángel Montenegro E.) (F) Fausto Reyes B. (F) Illegible (Silvio Moisés Casco Marenco) (F) Illegible (Rafael Ángel Avellán Rivas) Secretary.
RAFAEL ÁNGEL AVELLÁN RIVAS Secretary of the Board of Directors SIBOIF