Regulatory Alerts2023-01-01
Added · Updated
Circular 065 (2023)
The Superintendency of Banks issued Circular 065 (2023) to mandate weekly liquidity reporting twice a week in response to economic disruptions caused by protests and road closures. Banks are required to submit the LS02 liquidity report by noon on Wednesdays for Tuesday's closing figures and the AT10 report by midnight on Sundays for Friday's closing figures. These measures aim to ensure continuous monitoring of bank liquidity through the ITBANk system, with the new LS02 requirements taking effect on November 21, 2023.
16 November 2023 Circular No. SBP-DR-0065-2023
To: General Manager E. S. D.
Reference: Submission of Liquidity Reports (LS02) and (AT10).
Dear General Manager:
We take the liberty of informing you that this Superintendency of Banks, taking into consideration the potential effects on the normal operation of the banking system as a result of protests and road closures that have reduced economic and commercial activity throughout the country, and in accordance with the powers established in Article 17 of Agreement No. 4-2008 of 24 July 2008 regarding compliance with the legal liquidity index, has deemed it appropriate to determine changes in the frequency for the weekly submission of liquidity reports by banks.
In this regard, the requirement for the submission of the Liquidity Atom (LS02) in addition to the Liquidity Atom (AT10) is established, so that banks submit reports related to the calculation of the liquidity index, which must be sent to this Superintendency through the ITBANk system twice a week as follows:
• Liquidity Atom (LS02): Submission of the liquidity report with figures as of the close of Tuesday of each week (or the second business day of the week) by 12:00 noon on Wednesday (or the third business day of the week) through the Liquidity Atom (LS02), maintaining the closing date in the reported file.
Consequently, it is established that at the aforementioned deadline, the liquidity of each bank must be loaded into the Superintendency of Banks' system. The submission of the Structure of Maturity of Assets and Liabilities (EVAP) as of the close of Tuesdays (or the second business day of the week) will not be necessary.
• Liquidity Atom (AT10): The submission of the liquidity report with figures as of the close of Friday of each week by 12:00 midnight (midnight) on the following Sunday (deadline) through the Liquidity Atom (AT10) and the Structure of Maturity of Assets and Liabilities (EVAP) is maintained, maintaining the closing date in the reported files. In this sense, it is clearly established that, on the first business day of the week, the liquidity of each bank must be loaded into the Superintendency of Banks' system.
Page 2 of 2 Circular No. SBP-DR-0065-2023
The provisions related to the Liquidity Atom (LS02) will apply starting Tuesday, 21 November 2023.
We request that the General Manager issue pertinent instructions to their staff for compliance with this Circular.
Sincerely,
Amauri A. Castillo Superintendent ARV/ld