Technical Standards for the Requirement of Liquid Assets for Financial Entities that Capture Deposits

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THE COMMITTEE OF STANDARDS OF THE CENTRAL BANK OF RESERVE OF EL SALVADOR,

CONSIDERING: I. That Article 49-C of the Banks Law establishes that, without prejudice to the liquidity reserve established in Article 44 of said Law, the Superintendency shall establish as a prudential measure, a liquidity requirement for all banks in the system, consisting of a certain percentage of liquid assets, which shall bear a relationship to their payable liabilities. II. That Article 63, first paragraph, of the Banks Law establishes that banks shall elaborate and implement policies and control systems that allow them to adequately manage their financial and operational risks; considering, among others, provisions related to the management, destination, and diversification of credit and investments, liquidity administration, interest rates, and foreign currency operations, as well as those carried out abroad. III. That Article 31 of the Law of Cooperative Banks and Savings and Credit Societies establishes that, without prejudice to the liquidity reserve established in Article 27 of said Law, the Superintendency may establish as a prudential measure, a liquidity requirement for all cooperatives, consisting of a certain percentage of liquid assets, which shall bear a relationship to their payable liabilities. IV. That Article 41, first paragraph, of the Law of Cooperative Banks and Savings and Credit Societies establishes that cooperatives shall elaborate and implement policies and control systems that allow them to adequately manage their financial and operational risks, considering among others, provisions related to the management, destination, and diversification of credit and investments, administration of their liquidity, interest rates, and foreign currency operations. Likewise, they shall establish policies, practices, and procedures that allow them to know their clients in a reliable manner. V. That Article 36, first paragraph, of the Investment Banks Law establishes that, without prejudice to the liquidity reserve established in Article 30 of said law, the Central Bank shall establish as a prudential measure, a liquidity requirement for the Investment Banks of the system, consisting of a certain percentage of liquid assets, which shall bear a relationship to their payable liabilities. The liquid assets that constitute the liquidity reserve shall be included in this percentage. (1) VI. That Article 44, first paragraph, of the Investment Banks Law establishes that Investment Banks shall elaborate and implement policies and control systems that allow them to adequately manage their financial and operational risks;

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 2 of 15 CNBCR-01/2025 NRP-87 TECHNICAL STANDARDS FOR THE REQUIREMENT OF LIQUID ASSETS FOR FINANCIAL ENTITIES THAT CAPTURE DEPOSITS Approval: 24/01/2025 Validity: 08/02/2025 considering, among others, provisions related to the management, destination, and diversification of credit and investments, liquidity administration, interest rates, and foreign currency operations, as well as those carried out abroad. (1) VII. That Article 99, letter a), of the Law of Supervision and Regulation of the Financial System, establishes that it corresponds to the Committee of Standards of the Central Bank of Reserve of El Salvador to issue resolutions such as the approval of technical standards, instructions, and provisions that the laws regulating the supervised entities establish must be issued to facilitate their application, especially those related to solvency and liquidity requirements. (1)

THEREFORE, by virtue of the regulatory powers conferred by Article 99 of the Law of Supervision and Regulation of the Financial System, AGREES to issue the following:

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Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 4 of 15 CNBCR-01/2025 NRP-87 TECHNICAL STANDARDS FOR THE REQUIREMENT OF LIQUID ASSETS FOR FINANCIAL ENTITIES THAT CAPTURE DEPOSITS Approval: 24/01/2025 Validity: 08/02/2025

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 5 of 15 CNBCR-01/2025 NRP-87 TECHNICAL STANDARDS FOR THE REQUIREMENT OF LIQUID ASSETS FOR FINANCIAL ENTITIES THAT CAPTURE DEPOSITS Approval: 24/01/2025 Validity: 08/02/2025 For the titles described in the previous paragraph to be computable for the purposes of these Standards, they must be maintained in custody by a custodian agent designated by the Entity, which will be verified by the Superintendency. The custodian agent must be supervised by a public agency or institution in its country of origin. Likewise, for the change of custody and while they form part of the liquid asset requirement established in Article 4 of these Standards, Entities must request authorization from the Central Bank and inform the Superintendency. If entities constitute liquid assets with easily realizable titles, they must remit to the Superintendency and the Central Bank at the end of each fortnight the account statements, issued by the custodian agents, of the titles reported as liquid assets.

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Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 7 of 15 CNBCR-01/2025 NRP-87 TECHNICAL STANDARDS FOR THE REQUIREMENT OF LIQUID ASSETS FOR FINANCIAL ENTITIES THAT CAPTURE DEPOSITS Approval: 24/01/2025 Validity: 08/02/2025

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 8 of 15 CNBCR-01/2025 NRP-87 TECHNICAL STANDARDS FOR THE REQUIREMENT OF LIQUID ASSETS FOR FINANCIAL ENTITIES THAT CAPTURE DEPOSITS Approval: 24/01/2025 Validity: 08/02/2025

No. Compliance Period in Fortnights Level of Liquid Assets Required on Deposits Start End

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 9 of 15 CNBCR-01/2025 NRP-87 TECHNICAL STANDARDS FOR THE REQUIREMENT OF LIQUID ASSETS FOR FINANCIAL ENTITIES THAT CAPTURE DEPOSITS Approval: 24/01/2025 Validity: 08/02/2025 No. Compliance Period in Fortnights Level of Liquid Assets Required on Deposits Start End

(1) Modifications in articles 2 and 23 and incorporation of Considerations V and VI, approved by the Central Bank through its Committee of Standards, in Session No. CN-08/2025, of September 30, two thousand twenty-five, effective from October 15, two thousand twenty-five.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 10 of 15 CNBCR-01/2025 NRP-87 TECHNICAL STANDARDS FOR THE REQUIREMENT OF LIQUID ASSETS FOR FINANCIAL ENTITIES THAT CAPTURE DEPOSITS Approval: 24/01/2025 Validity: 08/02/2025

General Information on Liquid Assets Specific Information on Deposits in Foreign Banks Specific Information on Easily Realizable Assets Type of Liquid Asset Nominal Value (in US$) Monitoring Date Maturity Date Account Balance Type of Deposit Foreign Bank Residual Term ISIN Code Title Title Name (text value) Market Value (in US$) Rating Standard & Poor Rating Fitch Ratings Rating Moody's Issuer Country Custodian Agent a) Security Title

Total b) Deposit in Foreign Bank Total c) Deposit in Liquid Asset Account at BCR Total Total Liquid Assets (a +b +c)

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General Information on Other Investments Specific Information on Deposits in Foreign Banks Specific Information on Securities Type of Investment (without including liquid assets) Nominal Value (in US$) Monitoring Date Maturity Date Account Balance Percentage of Restriction (Reported, pledged) Type of Deposit Foreign Bank ISIN Code Title Title Name (text value) Market Value (in US$) Rating Standard & Poor Rating Fitch Ratings Rating Moody's Issuer Country Custodian Agent a) Security Title

Total b) Deposit in Foreign Bank

Total Total Other Investments (a +b)

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 12 of 15 CNBCR-01/2025 NRP-87 TECHNICAL STANDARDS FOR THE REQUIREMENT OF LIQUID ASSETS FOR FINANCIAL ENTITIES THAT CAPTURE DEPOSITS Approval: 24/01/2025 Validity: 08/02/2025

Maturity Term Amount (in US $) Percentage in relation to total 7 days 14 days 21 days 30 days 60 days 90 days 120 days 180 days 360 days Other terms Total Concentration Amount (in US $) Percentage in relation to total Concentration of the 25 largest depositors of total deposits

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 13 of 15 CNBCR-01/2025 NRP-87 TECHNICAL STANDARDS FOR THE REQUIREMENT OF LIQUID ASSETS FOR FINANCIAL ENTITIES THAT CAPTURE DEPOSITS Approval: 24/01/2025 Validity: 08/02/2025

1. 2)

General Information on Obligations Specific Information on credit lines Type of Obligation Granting Entity Country Amount Granted (in US$) Granting Date Maturity Date Interest Rate Grace Period in months Disbursement Method (weekly, Monthly, quarterly. etc.) Amount disbursed Balance owed to date (US$) Amortization Method (monthly, quarterly or at maturity) Amortization Amount Date first disbursement Has it disbursed according to contract (yes or no) Has it suspended the disbursements (yes or no)

1. Short Term Loan received at short term Short-term credit line Own Issuance Titles less than 1 year term Sub-total
2. Medium Term Loan received at medium term

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 14 of 15 CNBCR-01/2025 NRP-87 TECHNICAL STANDARDS FOR THE REQUIREMENT OF LIQUID ASSETS FOR FINANCIAL ENTITIES THAT CAPTURE DEPOSITS Approval: 24/01/2025 Validity: 08/02/2025 General Information on Obligations Specific Information on credit lines Type of Obligation Granting Entity Country Amount Granted (in US$) Granting Date Maturity Date Interest Rate Grace Period in months Disbursement Method (weekly, Monthly, quarterly. etc.) Amount disbursed Balance owed to date (US$) Amortization Method (monthly, quarterly or at maturity) Amortization Amount Date first disbursement Has it disbursed according to contract (yes or no) Has it suspended the disbursements (yes or no) Short-term credit line Own Issuance Titles greater than 1 year and less than 5 years term Sub-total 3. Long Term Loan received at long term Long-term credit line Own Issuance Titles greater than 5 years term

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 15 of 15 CNBCR-01/2025 NRP-87 TECHNICAL STANDARDS FOR THE REQUIREMENT OF LIQUID ASSETS FOR FINANCIAL ENTITIES THAT CAPTURE DEPOSITS Approval: 24/01/2025 Validity: 08/02/2025 General Information on Obligations Specific Information on credit lines Type of Obligation Granting Entity Country Amount Granted (in US$) Granting Date Maturity Date Interest Rate Grace Period in months Disbursement Method (weekly, Monthly, quarterly. etc.) Amount disbursed Balance owed to date (US$) Amortization Method (monthly, quarterly or at maturity) Amortization Amount Date first disbursement Has it disbursed according to contract (yes or no) Has it suspended the disbursements (yes or no) Sub-total Total (1+2+3)